Gasoil processing profits rose for a second day while fuel-oil losses narrowed as a refinery shutdown in Taiwan tightened supplies. Naphtha swaps fell to the lowest in more than three weeks.
Middle Distillates
Gasoil’s premium to Dubai crude, a measure of processing profit for the fuel, climbed 45 cents, or 2.4 percent, to $19.55 a barrel at 11:21 a.m. Singapore time, according to PVM Oil Associates Ltd., a London-based broker. The spread was at $19.93 a barrel on Aug. 1, the highest since June 16.
September swaps for gasoil fell $1.85, or 1.4 percent, to $127.20 a barrel. Jet fuel’s premium to gasoil, or the regrade, was unchanged at $1.55 a barrel.
Formosa Petrochemical Corp. estimated that the July 30 fire at its Mailiao complex caused NT$187 million ($6.5 million) in asset damages, the company said in a statement to the Taiwan stock exchange yesterday. The Mailiao refinery’s stoppage will cause an estimated NT$83 million of loss a day, according to statement.
Fuel Oil
Fuel oil’s discount to Dubai crude narrowed 60 cents, or 9.2 percent, to $6 a barrel, PVM data showed. Losses have shrunk 58 percent since the end of April as refinery maintenance reduced supplies.
High-sulfur fuel-oil swaps fell $11, or 1.6 percent, to $660.75 a metric ton, PVM data showed. The premium of 180- centistoke fuel oil to the 380-centistoke grade was at $9.25 a ton, down 25 cents, as prices of higher-quality utility fuel fell more than bunkers.
Light Distillates
September swaps for naphtha declined $19.50, or 2 percent, to $963.50 a ton, the lowest since July 12, PVM data showed.
The crack spread, a measure of the refining margin for processing Brent crude into the petrochemical feedstock, was at $111.93 a ton from $111.06 at the end of Asian trading yesterday, according to data compiled by Bloomberg.
To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
