SEOUL, Feb 16 - South Korean refiners will raise exports of jet fuel in February by around 20 percent from last month, in line with less demand for heating oil from local utilities, a Reuters survey showed on Monday.
The country's four refiners -- SK Energy (096770.KS), GS Caltex Corp, S-Oil Corp (010950.KS) and Hyundai Oilbank -- will raise exports of jet fuel to 390,000 tonnes in February, while keeping gas oil exports steady at 550,000 tonnes.
Jet fuel, also used as the heating oil kerosene, showed strong demand in the last week of January due to a cold snap that contributed to a rapid increase in South Korea's local demand.
Refiners, including the country's top refiner SK Energy (096770.KS) even had to borrow kerosene from state-run Korea National Oil Corp (KNOC) to meet promised requirements, industry sources said.
"Stocks in Japan are at a historical low and the demand is strong. We have no choice but to pay high premiums," said a middle distillates buyer.
Meanwhile, South Korean refiners have decided to cut crude refining rates by 3 percent in February in line with a steep fall in gas oil margins. [ID:nSP422315]
Last week, the Singapore branch of GS Caltex, South Korea's second-largest refiner, made its first bid for a prompt-delivery high-sulphur gas oil cargo on Asia's physical middle distillates price assessment process.
"The current price of gas oil is appealing, considering the steep contango structure in the market," said a regional middle distillates buyer.
The country's four refiners -- SK Energy (096770.KS), GS Caltex Corp, S-Oil Corp (010950.KS) and Hyundai Oilbank -- will raise exports of jet fuel to 390,000 tonnes in February, while keeping gas oil exports steady at 550,000 tonnes.
Jet fuel, also used as the heating oil kerosene, showed strong demand in the last week of January due to a cold snap that contributed to a rapid increase in South Korea's local demand.
Refiners, including the country's top refiner SK Energy (096770.KS) even had to borrow kerosene from state-run Korea National Oil Corp (KNOC) to meet promised requirements, industry sources said.
"Stocks in Japan are at a historical low and the demand is strong. We have no choice but to pay high premiums," said a middle distillates buyer.
Meanwhile, South Korean refiners have decided to cut crude refining rates by 3 percent in February in line with a steep fall in gas oil margins. [ID:nSP422315]
Last week, the Singapore branch of GS Caltex, South Korea's second-largest refiner, made its first bid for a prompt-delivery high-sulphur gas oil cargo on Asia's physical middle distillates price assessment process.
"The current price of gas oil is appealing, considering the steep contango structure in the market," said a regional middle distillates buyer.
