S. Korea projects refined oil product exports to plunge in H2

By Lee Joon-seung
SEOUL, July 26 (Yonhap) -- South Korea's exports of refined oil products are
forecast to plunge in the second half of this year due to overseas rivals'
increased production and lower refining margins, the government said Sunday.
The Ministry of Knowledge Economy forecast that the country's exports of such
products as gasoline, kerosene, diesel, naphtha, bunker-C oil and jet fuel will
fall 43.5 percent from a year ago to US$10.66 billion in the July-December
period.
In terms of volume, exports are projected to decline 12.9 percent from a year ago
to 162 million barrels.
In 2008, South Korea shipped out $36.96 billion worth of refined oil products,
with $18.91 billion exported in the July-December period.
The ministry attributed the expected fall to lower refining margins and slackened
demand arising from an overall economic slump, as well as stiffer competition
from India, China and Vietnam.
Refining margins refer to the difference in value between the products produced
by a refinery and the value of the crude oil used to make them.
Lower demand is also expected to cause the operational rate of local oil
refineries to continue to fall in the coming months.
The operational rate at domestic refineries stood at an average 87.0 percent in
January before falling to 70 percent levels in May and June.
yonngong@yna.co.kr
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