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Asia Distillates-Margins slip as Indian exports increase

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

The November gasoil crack fell 36 cents to $19.12 a barrelabove Dubai quotes, lowest since beginning of October, Reutersdata showed.

India's Essar Oil has offered its first November loadingcargo which will make it the company's fifth diesel export intwo years.

India's diesel exports for October were expected to increaseby 20 to 30 percent from previous months as domestic demandremains poor due to the delayed monsoon season and a weakeconomy.

Reliance Industries, India's biggest diesel exporter, wasexpected to increase its monthly diesel exports from its usual1.4 to 1.5 million tonnes a month to nearly 1.7 million tonnesin October, according to estimates given by several traders.

Essar Oil's cargo offer suggested that refiners expecteddomestic 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 lateOctober and peak next month during Diwali and Dhanteras, whendiesel demand for transport usage usually rises on increasedtravelling.

India's Mangalore Refinery and Petrochemicals Ltd (MRPL)sold its jet fuel cargo at a discount of 80 cents a barrel aboveSingapore 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 weakerprices. It sold an early November loading 0.25 percent sulphurgasoil cargo to BP at a premium of about $2.50 a barrel aboveSingapore quotes, about 25 cents lower than an earlier cargo.

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

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

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

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

* TENDERS: Essar Oil has offered 63,000 to 65,000 tonnes of500 ppm sulphur diesel for Nov. 3-7 loading. The tender closeson Oct. 15.

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

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

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

MID-DISTILLATESCASH ($/T) ASIA CLOSE Change % Change Prev RICCloseSpot Gas Oil 0.5% 130.51 -0.57 -0.43 131.08GO 0.5 Diff 0.50 -0.08 -13.79 0.58Spot Gas Oil 0.25% 131.91 -0.60 -0.45 132.51GO 0.25 Diff 1.90 -0.10 -5.00 2.00 <GO25-SIN-DIFSpot Gas Oil 0.05% 132.77 -0.53 -0.40 133.30GO 0.05 Diff 2.75 -0.04 -1.43 2.79 <GO005-SIN-DI>Spot Gas Oil 134.46 -0.43 -0.32 134.890.001%GO 0.001 Diff 4.45 0.07 1.60 4.38 <GO10-SIN-DIFSpot Jet/Kero 133.63 -0.52 -0.39 134.15Jet/Kero Diff 1.13 0.12 11.88 1.01SWAPS ($/T) ASIA CLOSE Change % Change Prev PM (1130 GMT)(0830 GMT) CloseBrent M1 114.94 -0.20 -0.17 115.14Gasoil M1 130.19 -0.60 -0.46 130.79Gasoil M1/M2 0.33 -0.24 -42.11 0.57Gasoil M2 129.86 -0.36 -0.28 130.22Regrade M1 3.01 0.00 0.00 3.01Regrade M2 2.02 -0.25 -11.01 2.27Jet M1 133.20 -0.60 -0.45 133.80Jet M1/M2 1.32 0.01 0.76 1.31Jet M2 131.88 -0.61 -0.46 132.49Gasoil 0.5%-Dubai 19.12 -0.36 -1.85 19.48Cracks M1Gasoil 0.5%-Dubai 19.16 -0.37 -1.89 19.53Cracks M2Jet Cracks M1 21.14 -0.61 -2.80 21.75Jet Cracks M2 20.76 -0.72 -3.35 21.48East-West M1 -25.92 11.57 -30.86 -37.49East-West M2 -19.15 9.28 -32.64 -28.43LGO M1 993.38 -14.25 -1.41 1007.63LGO M1/M2 10.50 -2.88 -21.52 13.38LGO M2 982.88 -11.37 -1.14 994.25Crack LGO-Brent M1 18.40 -1.71 -8.50 20.11Crack 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)(ReutersMessaging: jessica.jaganathan.reuters.com@reuters.net))

Keywords: MARKETS DISTILLATES/ASIA