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Asia’s diesel demand growth seen at 2nd lowest since 1998 crisis

SEOUL/SINGAPORE, June 13 (Reuters) Asia diesel demand is expected to canadian goose jacket grow this year at the second lowest rate since the 1998 financial crisis as slowing economies and subsidy cuts squeeze consumption and help build a surplus for which there are few markets.

canada goose outlet nyc Demand in top regional consumers China, India and Indonesia is expected to remain stagnant or fall. And as new uk canada goose refining capacity canada goose black friday sale is added in Asia and the Middle East, excess diesel is seen hitting an annual average of more than a million barrels per day (bpd) in 2014, according to one oil and gas consultancy. canada goose outlet nyc

canada goose outlet new york city That means regional returns or cracks from processing crude into the fuel already near 3 1/2 year Canada Goose Coats On Sale lows will remain slim, analysts said. Since diesel or Canada Goose Parka gasoil accounts for nearly 40 percent of the typical Asian oil plant output, overall processing profits will also be pressured and some regional refiners are already slowing run rates. canada goose outlet new york city

canada canada goose clearance sale goose outlet shop Asia surplus diesel would normally be shipped west but Europe is facing a glut as well, with diesel margins there holding at multi year lows. canada goose outlet shop

partial recovery this year is expected but growth will probably still fall short of the levels seen in 2011 or 2012, said Alex cheap Canada Goose Yap at energy consultancy canada goose factory sale FGE.

goose outlet canada Asia diesel demand will grow canada goose store slightly faster this year than in 2013, when it rose less than 1 percent the lowest in 15 years, FGE said. goose outlet canada

Oil consultancy Wood Mackenzie (Woodmac) has lower numbers, forecasting diesel use in Canada Goose online Asia to grow at 0.45 percent compared to average annual growth for the past five years at 3.9 percent.

canada goose outlet reviews For the second quarter this year, Woodmac estimated Asian diesel demand 0.7 http://www.mycanadagoosejacket.org percent higher than last year, while forecasting growth canada goose clearance in 2015 at 1.7 percent. canada goose outlet reviews

This slow growth amid increasing capacity will result in a diesel surplus of around 1.2 million bpd this year, said Suresh Sivanandam, an analyst at Woodmac, with China diesel exports averaging around 90,000 bpd, nearly double from 2013.

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New plants in India and the Middle East are also contributing to diesel overhang, analysts said.

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LITTLE Canada Goose Jackets ROOM There is some room but not a lot for Asian products to be soaked up elsewhere, said Amrita Sen, chief oil market analyst at Energy Aspects.

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Given the excess supply, Asian refiners especially in South Korea and Japan which account for about a third of Asian middle distillates exports have lowered crude runs slightly.

canada goose outlet in usa Korean refiners may buy canada goose jacket consider cutting run rates if the supply glut continues, but actually they have already trimmed by 30,000 bpd or 50,000 bpd so far, said a source at a North Asian refiner who declined to be identified. canada goose outlet in usa

official canada goose outlet South Korean refiners average operating rate from January to April this year was 80.7 percent, down from 83.1 percent during the same period last year, data from state run Korea National Oil Corp (KNOC) showed. official canada goose outlet

canada goose outlet parka In the first quarter of this year, South Korean and Japanese refiners processed less crude than last year amid a regional supply glut. canada goose outlet parka

canada goose outlet store PARING SUBSIDIES A gradual reduction of subsidies in India and Indonesia to bring domestic gasoil prices in line with global markets is also hurting consumption, analysts and industry sources said. canada goose outlet store

canada goose outlet toronto factory Indonesia diesel demand is expected to drop 4.6 percent this year, further than last year fall of 3.7 percent, Woodmac Sivanandam said. canada goose outlet toronto factory

canada goose Canada Goose sale outlet sale India diesel use fell 1 percent in the fiscal year that ended March 31, 2014, the first drop in more than a decade in the world fourth largest oil consumer, according to data from the oil ministry Petroleum Planning and Analysis Cell. canada goose outlet sale

New Delhi last year allowed state oil firms to hike diesel prices by small amounts every month with the aim to end subsidies eventually.

canada goose outlet online uk That should keep pressing down the country demand for diesel, said a trading source based in India. canada goose outlet online uk

canada goose black friday sale Western oil advisors and economists have for years been saying canada goose uk black friday that fuel subsidies have distorted Asian oil markets, encouraged overconsumption and led to massive refinery capacity surpluses in some countries such as China. canada goose black friday sale

canada goose outlet uk sale cheap canada goose uk Yet the impact of reduced canada goose subsidies in India and Indonesia may not be long lasting as economic growth in the two countries will likely bolster demand for diesel in coming years canada goose outlet uk sale.