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Asia's Gasoil Crack Spread Rebounds, Boosting Profit for Refiners

Strategic Insights

— 1 min read

The Asia-Pacific region saw a resurgence in the gasoil crack spread, a key indicator of profitability for refiners producing diesel, according to market data. This uptick signals increased earnings for diesel manufacturers as the market's premium to Dubai crude crude oil rose by 46 cents from December 31 to $19.32 a barrel at 3:01 p.m. Singapore time.

Key Takeaways:

  • The gasoil crack spread, a measure of processing profit, widened for the first time in a week, indicating increased profitability for refiners making diesel.
  • Jet fuel dropped 55 cents to a discount of 5 cents a barrel to gasoil, showing it is unprofitable to produce aviation fuel.
  • The premium of Japan naphtha to London-traded Brent crude futures fell $9.33 to $96.07 a metric ton at 5:23 p.m. Singapore time, narrowing for a third consecutive day.
  • BP sold gasoline and fuel oil cargoes in Singapore, while Socar Trading SA bought 25,000 tons of open-specification naphtha for delivery in the first half of March.
  • Arcadia Petroleum Ltd. purchased gasoline for a second day, with similar cargo purchases by BP and PetroChina Co.
  • Fuel oil's discount to Dubai crude narrowed $1.65 to $7.52 a barrel at 3:01 p.m. Singapore time, indicating reduced losses for refiners producing residual fuels.

Statistics:

  • The gasoil crack spread widened by 46 cents to $19.32 a barrel at 3:01 p.m. Singapore time.
  • Jet fuel dropped 55 cents to a discount of 5 cents a barrel to gasoil.
  • The premium of Japan naphtha to London-traded Brent crude futures fell $9.33 to $96.07 a metric ton at 5:23 p.m. Singapore time.
  • Soacar Trading SA bought 25,000 tons of open-specification naphtha for delivery in the first half of March at $963 a ton.
  • Arcadia Petroleum Ltd. purchased gasoline for a second day, loading Jan. 17 to Jan. 21, from Mercuria Energy Ltd. at $120.60 a barrel.
  • Fuel oil's discount to Dubai crude narrowed by $1.65 to $7.52 a barrel at 3:01 p.m. Singapore time.

Sources:

  • PVM Oil Associates Ltd., a broker.
  • Bloomberg News survey of traders.
  • BP Plc.
  • Socar Trading SA.
  • Arcadia Petroleum Ltd.
  • Mercuria Energy Ltd.
  • PetroChina Co.
  • Royal Dutch Shell Plc.
  • CPC Corp.
  • Pakistan State Oil Co.
  • Essar Oil Ltd.
  • Indian Oil Corp.
  • Hindustan Petroleum Corp.
  • Bharat Petroleum Corp.
  • Bloomberg News.

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