Asian refining margins have tumbled to their lowest level since mid-2001 on weaker regional fuel demand and high crude prices, pushing some exporting plants to cut back on production, industry source said.

Margins for simple, export-oriented refiners in Singapore -- a proxy for the region as a whole -- fell to $2.61 a barrel in discount over the past five days, down from a 62-cent loss last month and a $1.65 average profit in the past year, Reuters data showed.
'We would not buy spot crude, unless it is offered at deep discounts,' said a source at a South Korean refiner.
Profits for refiners in Asia had climbed in the past few years after industry consolidation and a surge in fuel demand from growing economies such as China, but higher retail prices have eaten into consumer demand while geopolitical supply worries continue to boost costs for refiners buying crude.
Top exporter Saudi Arabia raised its official crude selling prices (OSPs) for March for Asian buyers last week, leaving refiners faced with slumping profits in disbelief, traders said.
Sliding earnings have already pushed export-oriented refiners in South Korea to cut production, although peers in Singapore have yet to follow suit due to healthier secondary margins for production of higher grade fuels, trading sources say.
Singapore refiners with complex units cracking Dubai crude still made a profit of $1.34 a barrel, though this was down sharply from $3.92 in January and $6.75 over the past year, data showed. But some trading sources said even these secondary margins had dipped into negative territory.
'Just because you see (simple) margins over a five-day period at a possible low, it doesn't justify any cuts,' said a veteran trader with a Middle East trading company based in Singapore.
South Korea's top refinery SK Corp has cut its February crude runs to 715,000 barrels per day (bpd), down 55,000 bpd from January, and it will cut its March runs to 700,000 bpd. Inchon Oil Refinery also trimmed its crude runs this month.
South Korea's export-oriented plants are often the first to cut output when profits slide as they are most exposed to price volatility and are relatively simple in global terms, meaning they have a higher yield of low-value fuel than many competitors.