RPT-WRAPUP 1-Asia refiners cut runs as waning demand hits margin

(Repeat of story published late on Wednesday)

* Run cuts seen in Singapore, Thailand and Korea

* Cuts seen more extensive than in January as demand wanes

* Seasonal Q4 demand could offer relief

By Chua Baizhen

SINGAPORE, Aug 13 (Reuters) - Oil refiners in Asia have cut or are planning to trim crude processing rates, tracking moves by Western peers, as margins were hit by weakening fuel demand.

The cuts were led by Singapore Refining Co (SRC), which lowered rates by up to 7 percent at its 285,000 barrels per day (bpd) refinery, while Exxon Mobil Corp (XOM.N) might follow with an 8-10 percent reduction at its 605,000 bpd Singapore complex. [ID:nSP260527] [ID:nSP249551]

South Korean and Thai refiners are also cutting runs, signalling more extensive region-wide cutbacks than in January, when Japanese and Korean refiners pulled back runs after a mild winter and slowing Japanese economy hit fuel consumption.

At that time, firm demand in Australia and the Middle East kept Singapore plants running at full tilt. But soaring prices had dented consumption of motor fuels worldwide this time, hitting more refiners across Asia, Europe and the United States.

Complex margins in the Singapore refining hub halved in July from April to $4.97 a barrel and stood even lower in the last 15 days at an average of $4.13, Reuters data showed. <REF/MARGIN1>

But simple margins -- measuring the value of fuel produced from the first round of crude distillation -- rose to 47 cents a barrel over the last 15 days from a discount of $1.76 on average from May through July on tighter fuel oil supplies.

WIDESPREAD CUTS

Thai refiners, with a combined capacity of just above 1 million bpd, are considering cuts due to eroding margins, said PTTAR President Chainoi Puankosoom, who is also the spokesman for the country's refining industry. [ID:nSP165603]

"All refineries review their production plan to match oil prices every month. If they are going to make losses from exports, they will only focus on the domestic market," he said on Wednesday.

In South Korea, Hyundai Oilbank will be the first to cut refining rates to 300,000-310,000 bpd within the week, after raising them earlier this month. [ID:nSEO313158]

"There is so much supply from Northeast Asia. They have to cut runs sooner or later," said a trader.