UPDATE 1-S.Korea Dec crude runs to decline from Nov-survey

* Poor margins, stocks prevent refiners from raising runs

* Hyundai Oilbank to lower runs from Nov

* SK Energy, GS Caltex, S-Oil to keep runs steady
(Adds details)

SEOUL, Nov 26 (Reuters) - Total crude processing volume in
December for South Korean refiners will decline 0.4-0.9 percent
from November due to poor refining margins, a Reuters survey
showed on Thursday.

The volume will be about 80 percent of refiners' total
capacity, as refining margins declined to minus $1.26 a barrel
from an average of minus $0.70 for the last 15 days and $2.89 at
the beginning of the year. <REF/MARGIN1>

"Margins have not improved enough for us to raise rates," one
refiner said.

"We need to adjust our inventory before the year-end,"
another said.

The country's smallest refiner Hyundai Oilbank will slash its
December run rates to 300,000-310,000 barrels per day (bpd) from
this month's 320,000 bpd.

Other South Korean refiners plan to keep run rates in
December steady from November levels.

October crude imports by South Korea, the world's
fifth-largest crude buyer, were up 6.3 percent from a year
earlier as importers pushed for clearance, data from state-run
Korea National Oil Corp (KNOC) showed last Friday.

A KNOC analyst said lower crude runs and higher inventories
showed the rise in the oil imports was not enough to signal
economic recovery. [ID:nSEO310311]

The table below shows December crude run rates and maximum
capacity of the four South Korean refiners, in barrels per day
(bpd):

Dec '09 Nov '09 Max Capacity
SK Energy 760,000 760,000 1,115,000
GS Caltex 660,000 660,000 730,000
S-Oil Corp 520,000 520,000 580,000
Hyundai Oilbank 300,000-310,000 320,000 390,000
----------------------------------------------------------------
Total 2,240,000-2,250,000 2,260,000 2,815,000

(Reporting by Cho Meeyoung; Editing by Jonathan Hopfner)
((meeyoung.cho@thomsonreuters.com; +82 2 3704 5653; Reuters
Messaging: meeyoung.cho.reuters.com@reuters.net))
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