Asia jet fuel traded at the biggest discount to spot benchmark prices since February 2010 after Royal Dutch Shell Plc bought a cargo in Singapore. Naphtha bids and offers rose to the highest since May.
Middle Distillates
Shell purchased 100,000 barrels of jet fuel from JPMorgan Chase & Co. at $1 a barrel below benchmark quotes, according to a Bloomberg News survey of traders monitoring transactions on the Platts window. That’s the biggest discount since Feb. 9, 2010.
Jet fuel’s premium to gasoil, or diesel, rose 20 cents to $1.45 a barrel at 6:27 p.m. Singapore time, according to PVM Oil Associates, a broker. This regrade is up 32 percent this week, the most in five, indicating it is more profitable to produce aviation fuel over diesel.
Gasoil’s premium to Asian benchmark Dubai crude fell 11 cents from a week earlier to $18.62 a barrel, PVM said. This crack spread is a measure of refining profit.
Hin Leong Trading Pte bought 150,000 barrels of 0.5 percent sulfur gasoil from Shell, bringing its purchases this month to at least 3.05 million barrels, based on the survey. The Singapore trader received a discount of 30 cents a barrel. Total SA sold a cargo to China International United Petroleum & Chemical Corp., or Unipec, at minus 20 cents.
Hin Leong also bought 150,000 barrels of gasoil with 10 parts-per-million of sulfur from Vitol Group at $2.30 a barrel over quotes, the survey showed.
Light Distillates
Naphtha’s premium to London-traded Brent crude futures rose to $117.83 a ton at 5:43 p.m. Singapore time from $91.14 at the end of Asian trading on July 15, according to data compiled by Bloomberg.
Bids for naphtha cargoes delivered to Japan in September were at $1,007.50 a ton while offers were at $1,009.50 at 4:49 p.m. Singapore time, according to Ginga Petroleum, a broker. Prices were last above $1,000 in May, according to data compiled by Bloomberg.
Shell, the biggest buyer of 97-RON gasoline this month on the Platts window, bought 50,000 barrels from Trafigura Beheer BV and 50,000 barrels from Total SA at $130.10 a barrel, the survey showed. Shell also bought 50,000 barrels of 95-RON at $127.40 a barrel from Vitol. Total also sold 50,000 barrels of 95-RON at $126.40 a barrel to Vitol.
Fuel Oil
Brightoil Petroleum Holdings Ltd. brought its sales of 180- centistoke fuel oil in Singapore this month to at least 25 cargoes totaling 585,000 tons, according to the survey. The Hong Kong trader sold two 20,000-ton cargoes to BP Plc at $680 a ton and another at $1.50 a ton over benchmark quotes.
Westport Petroleum Inc. sold 20,000 tons of 380-centistoke fuel oil to ConocoPhillips at $4.25 a ton over benchmark quotes, the survey showed. That’s the largest premium since July 12.
Fuel oil’s discount to Dubai crude narrowed 41 cents to $7.53 a barrel at 6:27 p.m. Singapore time, according to PVM.
The premium of 180-centistoke fuel oil to 380-centistoke fuel oil grade was unchanged after falling to $9.25 a ton, PVM said. This viscosity spread narrowed 7.5 percent this week, indicating bunker, or marine fuel, has climbed more than 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
