S-Oil resumes production at No.2 RFCC on after fire incident -filing

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SEOUL : South Korea's S-Oil Corp said on Monday it has resumed production at its No.2 residue fluidized catalytic cracking (RFCC) unit after a blast at its Onsan refinery that killed one person last week.

South Korea's third-largest refiner said it plans to resume production at its No.1 paraxylene (PX) unit after scheduled maintenance between June 8 and July 15, the refiner said in a filing.

The refiner, which is majority owned by Saudi Aramco, had suspended output at its units in the city of Ulsan as a precaution since they were near the resulting fire.

The refiner also suspended production of several processing units in Osnan, a move that raised concerns about gasoline supplies in the Asian markets and drove refining margins for gasoline to a record high of $37.27 a barrel on Friday.

S-Oil exports gasoline mainly to Japan, Malaysia, Australia, Singapore and the Philippines, according to data from energy consultancy Vortexa.

"Although the S-Oil outage is significant, South Korea will still have a lot to export since there are other big refineries in the area," a Singapore-based trade source said, adding that Asia's cracks for gasoline have already been trading at high levels due to tight supplies.

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