Saudi Arabia, the world's top oil exporter was not expected to import gasoline this month, due to stable demand and increased domestic production, traders said on Wednesday.

The kingdom had imported around 17,038 barrels per day (bpd) of gasoline in November.

"We have seen them slowly cutting back on their imports since the second-half of the year," a trader said.

"This is part of a kingdom wide plan to wean itself off foreign gasoline imports...they want to be self sufficient."

Gasoline imports into Saudi have fallen consistenly over the past few months as domestic gasoline production increased with the full start-up of new refining capacity at Saudi Arabia's Rabigh Refining and Petrochemical (PetroRabigh) complex, trading sources said.

The $10.3 billion joint venture between Saudi Aramco and Japan's Sumitomo Chemical started partial operations at the end of 2008.

The integrated facility can produce up to 60,000 bpd of high-octane gasoline that will be converted from fuel oil.

The kingdom is now currently exploring plans to export up to 500,000 barrels of gasoline in January.

"They were going to do this in December but shelved the idea because the market has generally been down, and demand hasn't been so hot," a Middle East based trader said.

"We expect to hear from them soon if they are planning to export gasoline into the spot market...it will be largely done through private negotiations."

Saudi Aramco, the kingsom's state oil firm, ditched plans to export gasoline in December because of poor price levels.

The market has been trading between Middle East naphtha plus $45 to Middle East naphtha plus $60, about 25 per cent lower from levels seen in October.

"The market now is flat and should stay this way for a while, at least through the end of winter, we don't see any pockets of potential demand just yet," a trader said.

"But we are still keeping a close eye on Iranian consumption, they cut their purchases by quite a bit this month, that could mean they buy more in January."

Iran was expected to import about 56,633 barrels per day (bpd) of gasoline this month, down as much as 40 percent from the previous month.

The Islamic Republic purchased its December supplies at Middle East naphtha plus $45 to $50. – Reuters