Concerns were growing because of the rising number of unsold Korean cargoes still in the hands of traders for February and March lifting, they said.

"There are still so many Korean cargoes in traders' hands looking for a home. The arb is not open and there are few outlets in the region left. The only one who is still buying is Hin Leong," one trader said.

Singapore-based trader Hin Leong Trading has been the only company to consistently buy in the local spot market over the past few months and give the market much needed support.

March gas oil was last quoted at $12.35/$12.50, down from Thursday's $12.80/$12.95, brokers said. They said the market traded in the morning at $12.55, $12.50 and $12.45.

In the physical market, Hin Leong bought one cargo at $13.00 per barrel, down from the previous day's tradeat $13.15. Traders said the market had also been hurt by Indonesia's decision not to buy any cargoes for March and China's continued absence from the spot market.

They said refiners' decisions to raise crude runs in February was another bearish factor.

Overnight March Brent in London closed down 32 cents at $10.57 and March West Texas Intermediate (WTI) was down 36 cents at $12.02. The WTI losses were extended on ACCESS which was 14 cents lower at $11.88.

The weaker crude had had marginally impact on fuel oil due to the unexpectedly strong physical support where three cargoes changed hands.

Two related local traders bought the 20,000 tonne cargoes at $59.00 and $60.00 for two lots, raising prices by $1-2 from Thursday's $58.00 traded level.

As a result, February fuel oil was last quoted at $58.00/$59.00, down from $58.50/$59.50.

Naphtha, however, was down almost in tandem with the crude falls with March last quoted at $11.40/$11.60, down from Thursday's $11.70/$11.80, brokers said.

Elsewhere inTokyo, a lack of Daqing crude supply for February has boosted the price of alternative Minas, but the Indonesian grade may no longer be on an upward trend as availability is seen exceeding Japanese power firms' demand, traders said.

"If China's halt (of Daqing exports) is limited to February, it may not be easy for Minas to hit 60" cents per barrel over the Indonesian Crude Price (ICP), a trader with a trading house said.

The highest premium paid so far for March Minas is believed to be 57/58 cents. The latest deal for a controversial parcel that had originally been sold by China National United Oil Corp (Chinaoil) -- the sales agent for Daqing to Japan -- fetched 57 cents. No fresh deals were heard on Friday morning.

Buyer sources said no further communications had been exchanged between Chinaoil and Japanese buyers.

Vietnam's tender to sell March-loading Rang Dong crude was awarded to Taiyo Oil, for a total 600,000 barrels to be loaded in two cargoes, traders said.

The price could not be confirmedbut it was rumoured to be 70 cents per barrel over the average of Platt's and Asian Petroleum Price Index (APPI) quotes for Minas.

The rumoured level is sharply higher than the 31/32 cents paid for February Rang Dong cargoes in the previous tender.