Asia Gasoil Crack Rebounds, BP Sells Fuel Cargoes: Oil ProductsYee Kai Pin and Ann Koh
Asia’s gasoil crack spread rebounded, signaling increased profit for refiners making diesel. BP Plc sold gasoline and fuel oil cargoes in Singapore, the region’s largest oil-trading center.
Gasoil’s premium to Asian marker Dubai crude climbed 46 cents from Dec. 31 to $19.32 a barrel at 3:01 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a gauge of processing profit, widened for the first time in a week. There was no trading in Singapore yesterday because of the New Year holiday.
Jet fuel dropped 55 cents to a discount of 5 cents a barrel to gasoil, PVM said. A negative regrade shows it is unprofitable to make aviation fuel over diesel.
The premium of Japan naphtha to London-traded Brent crude futures fell $9.33 to $96.07 a metric ton at 5:23 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread, a measure of the profit from making the petrochemical and gasoline feedstock, narrowed for a third day.
Socar Trading SA bought 25,000 tons of open-specification naphtha for delivery in the first half of March from Glencore International Plc at $963 a ton, according to a Bloomberg News survey of traders who monitored the Platts window.
Arcadia Petroleum Ltd. purchased gasoline for a second day in Singapore, the survey showed. The London-based trader purchased 50,000 barrels of 92-RON grade, loading Jan. 17 to Jan. 21, from Mercuria Energy Ltd. at $120.60 a barrel. BP sold a similar cargo loading Jan. 23 to Jan. 27 to China International United Petroleum & Chemical Co., or Unipec, at $120.90 a barrel.
PetroChina Co. sold 50,000 barrels of 95-RON gasoline, loading Jan. 19 to Jan. 23, to Royal Dutch Shell Plc at $124 a barrel, according to the survey.
Mercuria bought 20,000 metric tons of 180-centistoke high-sulfur fuel oil from BP at a discount of $3.75 a ton to benchmark quotes, according to the Bloomberg survey. The cargo is for Jan. 28 to Feb. 1 loading.
Fuel oil’s discount to Dubai crude narrowed $1.65 to $7.52 a barrel at 3:01 p.m. Singapore time, according to PVM. This crack spread narrowed the most since October, indicating reduced losses for refiners producing residual fuels.
The premium of 180-centistoke fuel oil to 380-centistoke grade gained $1.50 to $10.25 a ton, PVM data showed. That’s the widest viscosity spread in a week, meaning bunker, or marine fuel, increased less than supplies used in power stations.
CPC Corp. delayed production at its No. 6 naphtha cracker in Kaohsiung to June because of construction delays, said Jessica Tang, a Taipei-based spokeswoman at Taiwan’s state refiner. The facility will be able to produce 720,000 tons a year of ethylene.
Pakistan State Oil Co. sought to buy 1 million tons of high-sulfur fuel oil for March to December delivery and 55,000 tons of low-sulfur grade for January, according to information on the company’s website.
CPC bought about 100,000 tons of full-range naphtha last week for February delivery to Kaohsiung, said two traders who participate in the market, asking not to be identified because they’re not authorized to speak to the media.
Essar Oil Ltd. offered to sell 55,000 tons of 92-RON or 95-RON gasoline for January loading from Vadinar, said two traders who asked not to be named because the information is confidential.
Indian Oil Corp. offered to sell as much as 35,000 tons of 380-centistoke fuel oil for January loading from Chennai, said two traders who participate in the market, asking not to be named because the information is confidential.
Hindustan Petroleum Corp. offered to sell as much as 30,000 tons of vacuum gasoil for January loading from Visakhapatnam, according to a document obtained by Bloomberg News.
Bharat Petroleum Corp. sought to sell 20,000 tons of 380-centistoke fuel oil for January loading from Kochi, said two traders who participate in the market, asking not to be identified because the information is confidential.