Asia fuel oil’s discount to crude narrowed to the lowest since March. Royal Dutch Shell Plc bought cargoes of naphtha and gasoline in Singapore, the region’s biggest oil-trading center.
Fuel Oil
Fuel oil’s discount to Dubai crude narrowed $1.16, or 19 percent, to $5.03 a barrel, based on calculations by Bloomberg. The difference is the least since March 16, showing refiners’ losses from turning oil into residual products decreased.
Benchmark 180-centistoke fuel oil rose $2, or 0.3 percent, to $661.50 a ton, according to Bloomberg data. The price of 380- centistoke fuel oil, mainly used as marine fuel, climbed $1, or 0.2 percent, to $651.50.
The premium, or viscosity spread, of 180-centistoke fuel oil to 380-centistoke grade was up $1 to $10 a ton, Bloomberg data showed.
Hin Leong Trading Pte purchased three cargoes of 380- centistoke fuel oil. Chevron Corp. sold two cargoes, one for loading June 22 to June 26 at a premium of $6 a metric ton to Singapore quotes and a second shipment loading June 27 to July 1 at the same price.
Kuo Oil Ltd. sold the third one for loading from June 22 to June 26 at a premium of $6.
Light Distillates
Naphtha’s premium to London-traded Brent crude fell $5.49, or 5.7 percent, to $90.58 a metric ton, calculations by Bloomberg showed. This crack spread dropped for the second time in seven days, signaling increasing profit from making the petrochemical feedstock.
Open-specification naphtha for delivery to Japan declined $3, or 0.3 percent, to $959 a ton, according to data compiled by Bloomberg. Benchmark 92-RON gasoline in Singapore rose 40 cents, or 0.3 percent, to $118.35 a barrel.
Vitol Group purchased three 50,000 barrel cargoes of 92-RON gasoline, according to traders that participate in the market. It took one loading from June 23 to June 27 from BP Plc at $118.30 a barrel, a second from July 3 to July 7 from Total SA at the same level and a June 27 to July 1 parcel at $119.40.
Shell bought two shipments of 97-RON. It got one from Mercuria Energy Trading loading from June 27 to July 1 at $124.90 a barrel and a second cargo at $125.50 from Vitol loading from June 24 to June 28.
Shell also purchased 25,000 metric tons naphtha loading to Japan for the second half of August at $958 a metric ton.
Gasoline’s premium to naphtha rose to $13.70 from $13 yesterday, based on Bloomberg data. A widening reforming margin shows it’s more profitable to turn naphtha into gasoline.
Middle Distillates
Gasoil’s premium to Asian benchmark Dubai crude, known as the crack spread, advanced 37 cents to $20.30 a barrel at 4:08 p.m. Singapore time, based on data from PVM Oil Associates, a London-based broker.
Gasoil, or diesel, with 0.5 percent sulfur fell 50 cents, or 0.4 percent, to $127.45 a barrel, according to Bloomberg data. Jet fuel fell 30 cents, or 0.2 percent, to $128.15.
Jet fuel’s premium to gasoil was unchanged at 65 cents, the lowest since April 13, PVM said. This regrade has narrowed for four straight days, indicating it’s less profitable to produce aviation fuel over diesel.
To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
