Outright Asian oil swap prices rose on Thursday as crude hit 10-month highs, while naphtha continued to retreat on concerns over demand. Front-month July fuel oil swaps gained 50 cents to $372.75 on Thursday morning as crude hit the highest front-month price since late August, brokers said. London Brent crude rose 3 cents to $73.08 a barrel at 0344 GMT, after having traded as high as $73.32 a barrel.
The spread between the 180 -and -380 centistoke (cst) grades widened 50 cents to $9.50. Prompt-month July naphtha swaps eased 10 cents to $75.10 a barrel by midday, on fears that more Asian petrochemical producers would switch to alternative feedstocks due to higher outright values.
The difference between the July/August spread narrowed 20 cents to 80 cents. The ICE Brent/naphtha crack was largely unchanged at $155 a tonne for second-half August, from $156 in the previous session. Front-month July gas oil was valued at $84.45 by midday, up 85 cents, after rising 35 cents on Wednesday. July's regrade edged down 5 cents to $2.00, while July's gas oil crack spread over Middle East Dubai crude rose 50 cents to $15.90 a barrel.