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South Korean Refiners Could Limit Diesel Exports in Q2 2023

OIL PRODUCTS

South Korean refiners are expected to limit diesel exports in April as they prioritise domestic sales after the government introduced new measures to support tourism arrivals and consumer spending.

  • Exports could average under 16mbbls per month in Q2 2023 according to S&P Global sources compared to 17mbbls per month in 2022 driven by strong middle distillate cracks.
  • A couple of recent tenders for April delivery have been cancelled according to S&P Global sources.
  • The turnaround season and weaker Asia gasoil cracks could add to the export reduction and could tighten the supply of gasoil in Asia.

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