Asia naphtha profits rose from the lowest in 10 months as crude costs declined. Jet fuel’s premium to gasoil extended gains.
Light Distillates
The premium of Japan-delivered naphtha to Brent crude climbed to $74.04 a metric ton from $60.67 at the end of Asian trading yesterday, according to data compiled by Bloomberg. This crack spread yesterday was the narrowest since August. It advanced as Brent futures dropped from yesterday’s six-week high of $120.16 a barrel in London on concern Europe’s debt crisis will threaten the region’s economic recovery.
Open-specification naphtha for delivery to Japan rose $9, or 0.9 percent, to $969 a ton, the highest in three days, Bloomberg data showed.
Benchmark 92-RON gasoline gained $1.65, or 1.4 percent, to $121.55 a barrel, based on Bloomberg data. Gasoline’s premium to naphtha increased 65 cents to $15.90. The wider reforming margin indicates it is more profitable to turn naphtha into gasoline.
PetroChina Co. sold 50,000 barrels of 92-RON gasoline for July 5 to July 9 loading to Vitol Group at $121.60 a barrel, traders said. Vitol sold 25,000 tons of naphtha for first-half August delivery to Royal Dutch Shell Plc at $968 a ton.
Middle Distillates
Gasoil, or diesel, with 0.5 percent sulfur rose 85 cents, or 0.7 percent, to $131.85 a barrel, according to Bloomberg data. Jet fuel climbed 70 cents, or 0.5 percent, to $132.85. Each product increased for a second day.
Gasoil’s premium to Asian benchmark Dubai crude fell 52 cents to $20.63 a barrel at 6 p.m. Singapore time, based on data from PVM Oil Associates, a broker. This crack spread, a measure of refining profit, dropped the most since June 6.
Jet fuel’s premium to gasoil gained 10 cents to $1.10 a barrel, the highest since June 1, PVM said. This regrade widened for a fifth day, the longest rising streak in a month, indicating it’s more profitable to produce aviation fuel.
Fuel Oil
Benchmark 180-centistoke fuel oil dropped $6, or 0.9 percent, to $667.25 a ton, according to Bloomberg data. The price of 380-centistoke fuel oil, mainly used as marine fuel, declined $5, or 0.8 percent, to $655. Each variety fell to the lowest since June 7.
Fuel oil’s discount to Dubai crude widened 63 cents to $7.36 a barrel, based on Bloomberg data. This means losses for turning oil into residual products were the biggest in three weeks.
The premium of 180-centistoke fuel oil to 380-centistoke grade was down $1 at $12.25 a ton, Bloomberg data showed. This viscosity spread has widened 23 percent in the past week, meaning bunker prices have lagged behind gains for higher- quality fuel oil.
To contact the reporters on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net; Ann Koh in Singapore at akoh15@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
