Asian refiners’ profits from making naphtha, gasoil and fuel oil fell after crude oil costs rose. China is on track to meet its year-end energy conservation goal, the China Daily reported, citing the vice chairman of the National Development and Reform Commission. Naphtha Japan’s benchmark open-specification naphtha forward contracts for second-half January delivery were bid at $792.50 a metric ton against offers at $795.50, according to brokerage Ginga Petroleum Singapore Pte. First-half February cargoes were bid at $789 a ton compared with offers at $792, data from Ginga Petroleum showed. Prices for mid-January to mid-February delivery rose $8, or 1 percent, to $778.25 a ton yesterday, according to data compiled by Bloomberg. Japan naphtha’s difference to Brent crude, or the crack spread, dropped to $146 a ton from $147.43 at the end of Asian trading yesterday, according to Bloomberg calculations. Stockpiles of the fuel in Japan rose 2.7 percent to 2 million kiloliters in the week ended Nov. 20, the Petroleum Association of Japan said. Crude oil in New York traded near the highest settlement in more than a week after U.S. jobless claims fell to the lowest level since 2008. Middle Distillates Gasoil’s premium to Dubai crude, or the crack spread, fell to $13.24 a barrel from $13.33 yesterday, according to brokerage PVM Oil Associates. December swaps for gasoil, or diesel, gained $2.15, or 2.3 percent, to $96.65 a barrel. Jet fuel’s premium to gasoil rose to $1.45 a barrel from $1.40 yesterday. The gap is at the biggest since January. A wider regrade indicates that aviation fuel is more profitable to produce compared with diesel. China used 3 percent less energy for every economic unit produced in the first nine months compared with a year earlier, China Daily reported, citing Xie Zhenhua, vice chairman of the National Development and Reform Commission. Fuel Oil Fuel oil’s discount to Dubai crude, a measure of refining losses, widened to $7.57 a barrel from $6.82 yesterday, PVM data showed. December high-sulfur fuel oil swaps rose $9.75, or 2 percent, to $493 a ton, PVM data showed. To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net

Source