SOUTH KOREA DATA: September gasoline exports jump 13% on month to record high

South Korea's September gasoline exports reached a record high, as refiners ramped up shipments to meet rebounding demand and fill a gap in the regional supply caused by fewer Chinese exports, data from Korea National Oil Corp. showed.

"The strong gasoline exports were mainly driven by eased anti-virus rules and introduction of living with COVID-19 by some countries, such as, Singapore and the UK," an official at the Korea Petroleum Association that represents local refiners said.

Singapore -- Asia's key gasoline blending hub -- was the biggest destination for South Korea's gasoline exports in September, the official said. South Korean refiners exported 5.46 million barrels of gasoline to Singapore in the third quarter, more than double the 2.39 million barrels shipped a year earlier, according to the official.

"As exports to China decreased in the wake of its imposition of tax on light cycle oil, or LCO, South Korean refiners have focused their exports drive on Singapore, and this strategy is working, resulting in hikes in gasoline shipments," the official said.

South Korea's gasoline exports jumped 12.94% month on month to 9.02 million barrels in September, the KNOC data, which dates to 1992, showed. Its total gasoline exports between January to September gasoline surged 28.72% year on year to 69,583 million barrels, according to the data.

Meanwhile, the country's gasoline stocks fell 11.02% on the month to 5.427 million barrels in September, the data showed.

Driving activity rebounds

Asia's gasoline market has rebounded sharply fueled by easing coronavirus-led mobility curbs and higher driving activity following the end of the monsoon season.

"There are more travel and more gatherings in South Asian countries, along with strong energy prices and supportive naphtha prices," a refiner said.

Key FOB Singapore 92 RON gasoline crack against front-month ICE Brent crude futures reached $17.78/b at the Asian close Oct. 26, the highest since July 10, 2015 when it was $17.99/b, S&P Global Platts data showed.

South Korea's domestic demand for gasoline rose 1.85% month on month and 9.75% year on year to 7.578 million barrels in September, due to improved mobility, the data showed.

The country's automobile traffic surpassed pre-pandemic levels, with 1.253 billion vehicles using its highways over January-September, up 4.8% from the same period in 2020 and 1.6% from 2019, according to data from its Transportation Ministry.

South Korea's gasoline production slipped 1.23% month on month to 14.509 million barrels in September, the data showed. The production was, however, up for the second straight quarter after rising 33.29% year on year in September.