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Asia Distillates-Margins slip as Indian exports increase

SINGAPORE, Oct 12 (Reuters) - Asian gasoil margins slipped on Friday as more spot exports emerged from India with its domestic demand lower than previous months on a delayed monsoon and weaker economic outlook.

The November gasoil crack fell 36 cents to $19.12 a barrel above Dubai quotes, lowest since beginning of October, Reuters data showed.

India's Essar Oil has offered its first November loading cargo which will make it the company's fifth diesel export in two years.

India's diesel exports for October were expected to increase by 20 to 30 percent from previous months as domestic demand remains poor due to the delayed monsoon season and a weak economy.

Reliance Industries, India's biggest diesel exporter, was expected to increase its monthly diesel exports from its usual 1.4 to 1.5 million tonnes a month to nearly 1.7 million tonnes in October, according to estimates given by several traders.

Essar Oil's cargo offer suggested that refiners expected domestic demand to remain weak at least until early November.

"It's very difficult to predict the demand for next month, some are expecting sales to pick up during the festival season, but it's really hard to say," a second Indian-based source said.

The festival and wedding season will start picking up in late October and peak next month during Diwali and Dhanteras, when diesel demand for transport usage usually rises on increased travelling.

India's Mangalore Refinery and Petrochemicals Ltd (MRPL) sold its jet fuel cargo at a discount of 80 cents a barrel above Singapore quotes, about 20 cents firmer than a previous cargo, suggesting good demand from Europe for arbitrage cargoes.

The company, however, sold its gasoil cargo at weaker prices. It sold an early November loading 0.25 percent sulphur gasoil cargo to BP at a premium of about $2.50 a barrel above Singapore quotes, about 25 cents lower than an earlier cargo.

Thailand's PTT sold a gasoil and jet fuel combination cargo to Chevron for early November loading at premiums of $1.70 and $1 a barrel respectively, traders said.

In Taiwan, Formosa Petrochemical Corp may reduce its November diesel exports by up to two cargoes as it has shut a secondary unit following a leak.

The No. 2 residue desulphuriser unit was shut on Thursday and the unit will stay idle between 7 and 10 days.

Vietnam's Saigon Petro bought 10,000 tonnes of 0.25 percent sulphur gasoil for late October at a premium of 40-50 cents a barrel above Singapore quotes on a free-on-board (FOB) Singapore basis.

* TENDERS: Essar Oil has offered 63,000 to 65,000 tonnes of 500 ppm sulphur diesel for Nov. 3-7 loading. The tender closes on Oct. 15.

* SINGAPORE CASH DEALS: Two jet deals, no gasoil trades.

- Shell sold 100,000 barrels of jet fuel for Oct. 27-31 loading to Hin Leong at a premium of $1.10 a barrel above Singapore quotes.

- BP sold 100,000 barrels of jet fuel for Oct. 27-31 loading to Unipec at a premium of $1.15 a barrel above the average of Oct. 29-Nov 2 Singapore quotes.

MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Spot Gas Oil 0.5% 130.51 -0.57 -0.43 131.08 GO 0.5 Diff 0.50 -0.08 -13.79 0.58 Spot Gas Oil 0.25% 131.91 -0.60 -0.45 132.51 GO 0.25 Diff 1.90 -0.10 -5.00 2.00 <GO25-SIN-DIF Spot Gas Oil 0.05% 132.77 -0.53 -0.40 133.30 GO 0.05 Diff 2.75 -0.04 -1.43 2.79 <GO005-SIN-DI > Spot Gas Oil 134.46 -0.43 -0.32 134.89 0.001% GO 0.001 Diff 4.45 0.07 1.60 4.38 <GO10-SIN-DIF Spot Jet/Kero 133.63 -0.52 -0.39 134.15 Jet/Kero Diff 1.13 0.12 11.88 1.01 SWAPS ($/T) ASIA CLOSE Change % Change Prev PM (1130 GMT) (0830 GMT) Close Brent M1 114.94 -0.20 -0.17 115.14 Gasoil M1 130.19 -0.60 -0.46 130.79 Gasoil M1/M2 0.33 -0.24 -42.11 0.57 Gasoil M2 129.86 -0.36 -0.28 130.22 Regrade M1 3.01 0.00 0.00 3.01 Regrade M2 2.02 -0.25 -11.01 2.27 Jet M1 133.20 -0.60 -0.45 133.80 Jet M1/M2 1.32 0.01 0.76 1.31 Jet M2 131.88 -0.61 -0.46 132.49 Gasoil 0.5%-Dubai 19.12 -0.36 -1.85 19.48 Cracks M1 Gasoil 0.5%-Dubai 19.16 -0.37 -1.89 19.53 Cracks M2 Jet Cracks M1 21.14 -0.61 -2.80 21.75 Jet Cracks M2 20.76 -0.72 -3.35 21.48 East-West M1 -25.92 11.57 -30.86 -37.49 East-West M2 -19.15 9.28 -32.64 -28.43 LGO M1 993.38 -14.25 -1.41 1007.63 LGO M1/M2 10.50 -2.88 -21.52 13.38 LGO M2 982.88 -11.37 -1.14 994.25 Crack LGO-Brent M1 18.40 -1.71 -8.50 20.11 Crack LGO-Brent M2 17.98 -1.41 -7.27 19.39

(Reporting by Jessica Jaganathan, editing by William Hardy)

((jessica.jaganathan@thomsonreuters.com)(+65 6870 3822)(Reuters Messaging: jessica.jaganathan.reuters.com@reuters.net))

Keywords: MARKETS DISTILLATES/ASIA