Asia’s gasoil crack spread widened to the most in about a week, signaling increasing profits for refiners turning crude into the middle distillate. Trafigura Beheer BV bought cargoes of the fuel in Singapore, the region’s biggest oil-trading center.
Gasoil’s premium to Dubai crude rose 37 cents at $20.10 a barrel at 2:29 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, widened for a fourth day in five days to the most since Dec. 7.
Jet fuel’s premium over diesel, or the regrade, was unchanged after rising to 15 cents on Dec. 14, according to PVM data.
Trafigura bought three gasoil cargoes of 150,000 barrels each for January loading, according to the Bloomberg News Survey of traders who monitored the Platts window. The company bought two cargoes with 0.5 percent sulfur from BP Plc and Hin Leong Trading Pte at a $1.20 a barrel discount to the average January price and parity to December balance quotes respectively. The cargoes are for loading between Jan. 1 to Jan. 5 and Jan. 6 to Jan. 10.
Trafigura also bought a 0.05 percent-sulfur cargo from PetroChina Co. at a premium of 20 cents a barrel to January average benchmark prices. The cargo will load between Jan. 1 to Jan. 5.
Fuel oil’s discount to Asian marker Dubai crude narrowed for a second day by 33 cents to $6.86 a barrel, according to PVM.
The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, advanced 25 cents to $10.25 a ton, PVM said. This indicates bunker, or marine fuel, gained less than supplies used in power stations.
BP sold 50,000 barrels of 92-RON gasoline to PetroChina for Jan. 5 to Jan. 9 loading, according to the survey. The cargo changed hands at $114.90 a barrel.
Royal Dutch Shell Plc bought 25,000 metric tons of naphtha from Glencore International Plc for delivery in the second half of February and sold the same quantity for second-half March. The transaction was at $16 a ton.
The premium of Japan naphtha to London-traded Brent crude futures gained $17.10 to $106 a ton at 5:22 p.m. Singapore time, according to data compiled by Bloomberg. The difference is also known as the crack spread.
India’s Mangalore Refinery & Petrochemicals Ltd. and its parent Oil & Natural Gas Corp. offered to sell fuel cargoes for loading in January, according to tender documents obtained by Bloomberg News.
Indian Oil Corp. offered to sell a total of 65,000 tons of naphtha for loading in January From Chennai and Kandla, said two traders who asked not to be identified because the information is confidential.
China International United Petroleum & Chemical Co., or Unipec, and Gunvor Group Ltd. bought naphtha and fuel oil cargoes for January loading from Indian Oil, said two traders who asked not to be identified because the information is confidential.
Inpex Corp. is closing its 4,700 barrel-a-day Kubiki refinery tomorrow due to decline in crude production from domestic fields and plant inefficiency, Keisuke Yano, a spokesman, said by phone.