Asia’s fuel oil crack widened to the biggest spread since May 2011, signaling losses for refiners turning crude into residual products. Royal Dutch Shell Plc sold jet fuel cargoes for a third day in Singapore.
Fuel oil’s discount to Asian marker Dubai crude widened 11 cents to $9.43 a barrel at 2:22 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.
The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged for a second day at $10 a metric ton, PVM said. This indicates bunker, or marine fuel, moved in tandem with supplies used in power stations.
Shell sold 100,000 barrels of jet fuel to Trafigura Beheer BV for Dec. 6 to Dec. 10, the earliest loading period, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. The cargo changed hands at a discount of 5 cents a barrel to benchmark quotes.
Shell also sold the same quantity of jet fuel to Hin Leong Trading Pte for Dec. 14 to Dec. 18 loading, the survey showed. Europe’s biggest oil company was paid parity to benchmark prices for Dec. 12 to Dec. 18.
Jet fuel’s premium to gasoil, or diesel, dropped 5 cents to $1.50 a barrel at 2:22 p.m. Singapore time, according to PVM. This regrade declined for a third day, meaning it’s less profitable to make aviation fuel over diesel.
Gasoil’s premium to Dubai crude increased 48 cents to $17.80 a barrel, PVM data showed. This crack spread, a measure of processing profit, was the widest since Nov. 8.
The premium of Japan naphtha to London-traded Brent crude futures fell $11.44 to $94.10 a metric ton at 5:15 p.m. Singapore time, according to data compiled by Bloomberg. The difference, also known as the crack spread, narrowed for the second time this week.
BP Plc sold 50,000 barrels of 95-RON gasoline, loading Dec. 6 to Dec. 10, to Phillips 66 at $121.50 a barrel, according to the Bloomberg survey.
Bharat Petroleum Corp. sold 35,000 tons of naphtha each to PTT Pcl and Marubeni Corp. for December loading from Mumbai, said two traders who asked not to be identified because the information is confidential.
Saigon Petroleum Co. and Thanh Le General Import Export Trading Corp., known as Thalexim, sought to buy as much as 27,000 tons of 92-RON and 95-RON gasoline and 0.25 percent sulfur gasoil for December delivery to Cat Lai, according to a joint tender document obtained by Bloomberg News.
HPCL-Mittal Energy Ltd. offered to sell as much as 20,000 tons of naphtha for December loading from Mumbai, according to a tender document obtained by Bloomberg News.