SINGAPORE: Thailand's diesel exports fell in December as domestic demand increased with year-end holidays and as vehicles returned to the streets after the country's worst floods in 50 years, industry sources said on Tuesday.
Diesel exports to Singapore nearly halved in the first two weeks of December to 628,340 barrels, from the same period a month ago, data from Singapore's International Enterprise showed.
Exports had also decreased in October even though it was the worst month of floods but that was because several refineries were undergoing maintenance to upgrade units to meet Euro IV fuel emission standards next year, traders said.
Latest Ministry of Energy data from Thailand showed gasoil exports at 65,088 barrels per day in October, nearly half the 128,918 bpd exported in September.
The country exported 85,155 bpd of gasoil in the first 10 months of the year, compared with 93,969 bpd in the same period last year, the data showed.
"Diesel demand has been going up since the flooding situation is better now. Our diesel inventories are actually quite low and people were coming to us asking for diesel, so there's also some pent-up demand," a source with a Thai refiner said.
Gasoil exports from Thailand usually end up within Southeast Asia, especially in countries like Vietnam, the Philippines and Singapore, traders said.
Damage from the floods, which began in late July and grew worse in October, was pegged at 1.3 trillion baht ($42.2 billion).
Some factories in big industrial estates, which were shut during the floods, are now back at work and others are being cleaned up as waters have subsided.
Gasoil is used for transportation of heavy trucks, for boat engines and industrial use in Thailand, sources said.
While the fall in exports from Thailand has kept Asian gasoil cracks above $18 a barrel, demand from Vietnam and the Philippines has remained lacklustre in December, they said.
Exports from Thailand could likely increase from next year after the New Year demand slows and as refineries return from upgrading their units, traders said.
The Asian gasoil crack for January was down 4 cents to $18.39 a barrel over Dubai crude on Monday.
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