Asia naphtha’s crack spread dropped, signaling eroding profit for refiners. Hin Leong Trading Pte bought a discounted gasoil cargo in Singapore, the region’s biggest oil-trading center. Light Distillates The premium of Japan-delivered naphtha to Brent sank to $60.67 a metric ton today from $74.59 at the end of Asian trading yesterday, according to data compiled by Bloomberg. The narrowing crack spread indicates refining margins from making the petrochemical feedstock are declining. Open-specification naphtha for delivery to Japan dropped $8.50, or 0.9 percent, to $960 a ton, Bloomberg data showed. Prices are at the lowest in four trading days. Benchmark 92-RON gasoline fell $1.75, or 1.4 percent, to $119.90 a barrel, based on Bloomberg data. Prices are at the lowest in a week. Gasoline’s premium to naphtha shrank 75 cents today to $15.25. The narrower reforming margin indicates it is less profitable to turn naphtha into gasoline. BP Plc sold 25,000 tons of naphtha for first-half August delivery to Glencore International AG at $959 a ton, traders said. Trafigura Beheer BV bought 50,000 barrels of 92-RON gasoline for loading June 29 to July 3 from the European explorer at $119.95 a barrel. Trafigura sold 50,000 barrels of 97-RON for loading July 6 to July 10 to Vitol Group at $124 a barrel. Middle Distillates Gasoil, or diesel, with 0.5 percent sulfur rose 5 cents to $131 a barrel, according to Bloomberg data. Jet fuel climbed 50 cents to $132.15. In Singapore, Hin Leong bought 150,000 barrels of 0.5 percent sulfur gasoil from Barclays Plc at 50 cents a barrel below benchmark quotes, traders said. That’s the same discount the Singapore trader received June 10 in the most recent transaction. Hin Leong sold 250,000 barrels with 0.25 percent sulfur to PetroChina Co. at a 30-cent premium, the first time this grade changed hands since May 6, according to Bloomberg tracking of deals. Gasoil’s premium to Asian benchmark Dubai crude increased 54 cents to $21.45 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, was at the widest since April 15. Jet fuel’s premium to gasoil gained 5 cents to 95 cents a barrel, PVM said. This regrade widened for a fourth day, indicating it’s more profitable to produce aviation fuel. Fuel Oil Benchmark 180-centistoke fuel oil fell $8.50, or 1.3 percent, to $673.25 a ton, according to Bloomberg data. The price of 380-centistoke fuel oil, mainly used as marine fuel, declined $9.50, or 1.4 percent, to $660. Each variety dropped the most since May 23. Fuel oil’s discount to Dubai crude widened $1.66 to $6.73 a barrel, based on Bloomberg data. That’s the largest difference so far this month, indicating widening losses for turning oil into residual products. The premium of 180-centistoke fuel oil to 380-centistoke grade was up $1 at $13.25 a ton, Bloomberg data showed. This viscosity spread is at the widest in three weeks. Refinery News Titan Chemicals Corp., a unit of Honam Petrochemical Corp., will shut one of two naphtha crackers at Pasir Gudang in Malaysia from June 26 for 30 days of maintenance, a company official said today. 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

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