South Korea's S-Oil has restarted a residual fluid catalytic cracker (RFCC) at its 580,000 b/d Onsan refinery, adding to already ample diesel supplies in Asia-Pacific with few arbitrage opportunities to Europe or the US.
The 64,000 b/d RFCC resumed operations following scheduled maintenance at the start of June. Improved margins, amid a favourable crack spread, has partly contributed to the refiner raising Onsan's run rates to around 515,000 b/d this month from 450,000 b/d previously. S-Oil's diesel exports for July are likely to be around 64,000 b/d, higher than 60,000 b/d in June.
Gasoil's crack spread, or its premium relative to Dubai crude swaps for August, firmed to around $11.95/bl at the end of last week. But this still lagged levels above $13/bl achieved on 18 June, as a steady flow of exports from China especially outpaced demand. China's diesel exports in June were expected to be around 149,000 b/d, with refinery runs remaining high and an annual domestic fishing ban adding to export volumes.
The 64,000 b/d RFCC resumed operations following scheduled maintenance at the start of June. Improved margins, amid a favourable crack spread, has partly contributed to the refiner raising Onsan's run rates to around 515,000 b/d this month from 450,000 b/d previously. S-Oil's diesel exports for July are likely to be around 64,000 b/d, higher than 60,000 b/d in June.
Gasoil's crack spread, or its premium relative to Dubai crude swaps for August, firmed to around $11.95/bl at the end of last week. But this still lagged levels above $13/bl achieved on 18 June, as a steady flow of exports from China especially outpaced demand. China's diesel exports in June were expected to be around 149,000 b/d, with refinery runs remaining high and an annual domestic fishing ban adding to export volumes.
