Asia Gasoil, Fuel Oil Cracks Weaken for Third Day: Oil Products
Gasoil’s premium to Dubai crude fell 17 cents, or 0.9 percent, to $19.16 a barrel at 11:40 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.
Gasoil swaps for October rose 16 cents, or 0.1 percent, to $126.35 a barrel, PVM data showed. Jet fuel’s premium to gasoil widened 5 cents to $1.45 a barrel. This spread, or the regrade, has increased 61 percent from a week earlier, signaling it’s more profitable to make aviation fuel over diesel.
High-sulfur fuel oil’s discount to Dubai crude widened 33 cents to $3.57 a barrel, PVM data showed. A bigger discount indicates wider refining losses from making the fuel.
Japan naphtha’s premium to London-traded Brent crude futures gained $6.13, or 5.9 percent, to $109.59 a ton, according to data compiled by Bloomberg. This spread increased for a fifth day.
Naphtha swaps for October increased $5.75, or 0.6 percent, to $938.25 a ton, PVM data showed.
In Singapore, gasoline’s premium to naphtha fell 62 cents to $17.88 a barrel yesterday. This reforming margin has increased about 40 percent so far this month, signaling it’s more profitable for refiners to make car fuel over petrochemical feedstock.
To contact the editor responsible for this story: Alexander Kwiatkowski at firstname.lastname@example.org