Outright Asian oil swap prices moved forward on Tuesday, led by fuel oil, as crude hit 10-month highs the previous day, brokers said. Front-month July fuel oil swaps surged by $6.00 to $374 on Tuesday morning. Brokers reported weaker demand, but traders in Tokyo were not deterred by the higher prices just yet.
London Brent crude oil traded 24 cents lower at $72.39 a barrel by 0351 GMT, after hitting $72.77 in the previous session, the highest since August. The spread between the 180 -and -380 centistoke (cst) spread stood at $8.25, after gaining $1.25 in the previous session. Prompt-month July naphtha swaps advanced $1.50 to $76.40 a barrel by midday, rising for the seventh-straight day.
The difference between the July/August spread held at $1.00. The ICE Brent / naphtha crack - the premium paid for naphtha compared with Brent prices - edged down from $171.00 to around $170.75 a tonne for first-half of August.
Front-month July gas oil was valued at $83.85 by midday, rising $1.05 on higher crude, after dropping 14 cents in the previous session. "Prices are definitely hindering buying interest," a broker said. July's regrade remained unchanged at $2.50, while July's gas oil crack spread over Middle East Dubai crude fell 64 cents to $15.36 a barrel.
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