South Korean exports of gas oil are expected to fall next month, as its production has been reduced in favour of kerosene to meet strong heating demand and as refineries cut runs, a survey showed.

The country’s five oil refiners are set to export 595,000 tonnes of gas oil (diesel) next month, down 17 per cent from 720,000 tonnes booked for overseas shipments in February,  sources said.
The cut in exports came as third-biggest refiner S-Oil plans to slash its gas oil exports to 150,000 tonnes in March from 210,000 tonnes this month.
Traders said S-Oil had to adjust its production mode to maximise kerosene output at the expense of gas oil to cover its shortfall of heating fuel supplies.
“It looks like S-Oil was over-committed for its kerosene sales, and that’s why they had to change the yield,” a Seoul-based trader said.
Heating fuel demand in South Korea rose in December and early January due to icy weather in Northeast Asia.
Inchon Oil Refinery will not export medium-range sized cargo in March, as it has only 5,000 tonnes of gas oil to sell overseas, down from 40,000 tonnes in February.
The company plans to cut its March crude runs to 130,000 barrels per day (bpd) from 140,000 bpd in February.
Hyundai Oilbank plans to export 50,000 tonnes of gas oil next month versus 80,000 tonnes in February, as it is set to reduce March crude runs.