Singapore (Platts)--21Nov2012/424 am EST/924 GMT
Visbreaking margins for Middle Eastern benchmark Dubai crude basis Singapore fell below minus $4/barrel Tuesday for the first time in more than eight months on the back of a fall in the fuel oil crack. Visbreaking margins fell to minus $4.15/b Tuesday, the lowest since March 15 when they were at minus $4.17/b. The Dubai visbreaking margin reflects the cash Dubai assessment against the visbreaking netback for Singapore published by the consulting engineering firm of Turner, Mason & Co. Article continues below...Request a free trial of: Oilgram NewsOilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
Visbreaking margins for Middle Eastern benchmark Dubai crude basis Singapore fell below minus $4/barrel Tuesday for the first time in more than eight months on the back of a fall in the fuel oil crack. Visbreaking margins fell to minus $4.15/b Tuesday, the lowest since March 15 when they were at minus $4.17/b. The Dubai visbreaking margin reflects the cash Dubai assessment against the visbreaking netback for Singapore published by the consulting engineering firm of Turner, Mason & Co.
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Visbreaking margins are the yields refiners earn from refining crude oil and crude oil residues, through a visbreaking process. In addition to lower visbreaking margins, the cracking margin for the medium heavy sour grade has also been under pressure through November, averaging $2.10/b through the month, in contrast to $4.43/b during October. Because Dubai has a high yield of fuel oil, any slump in fuel oil cracks usually weighs on both visbreaking and cracking margins for the grade. Front month 180 CST fuel oil crack swaps against Dubai basis Singapore slumped to minus $9.40/b on Tuesday, the lowest since May 11, 2011. The crack swap was at minus $5.50/b on October 22. Platts publishes yields and netbacks produced by Platts Daily Yield, a joint venture between Platts and Turner, Mason & Co. All yields and netbacks in Platts Crude Oil Marketwire are produced using Platts product assessments and Turner & Mason's TMMS refinery modeling platform, configured to represent actual processing capabilities in specific regional centers, based on a survey of operating refineries to be updated annually.--Daniel Colover, daniel_colover@platts.com --Edited by Martin O'Rourke, martin_orourke@platts.com
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