SINGAPORE, May 2 (Reuters) - Asia-Pacific crude market held steady on Wednesday as most of the June cargoes were sold, except for condensate which could fall further in line with weaker naphtha cracks. North Sea arbitrage crude flows to South Korea could rise as Hyundai Oilbank, South Korea's smallest refiner, bought 1 million barrels of Forties crude to load in May, likely its first arbitrage purchase since a new tax incentive last year, trade sources said. * ARBITRAGE - Statoil sold the 1 million barrels of Forties crude to Hyundai and the cargo could load at the end of May, the sources said. Hyundai's purchase may increase the total arbitrage volume to 5-6 million barrels in May, up from the 4 million barrels shipped from Europe to South Korea each month since a tax incentive drew the first ship in December. The overall volume to be loaded in May would depend on whether Statoil can sell another 1 million barrels of North Sea crude, allowing it to load both cargoes in one Very Large Crude Carrier (VLCC) and minimise freight costs, traders said. Statoil has not chartered a vessel for this cargo yet although it earlier booked VLCC Front Tina for $6.3 million to load 2 million barrels of crude from Mongstad on May 21. The North Sea barrels on Front Tina are likely Troll and Alvheim which have been sold to SK Energy, traders said, although Statoil could keep its options open by using the tanker to ship Hyundai's Forties. Glencore tried to book VLCC Achilleas to load Forties at Hound Point on May 30, but the fixture has likely failed because it has yet to secure a buyer, the sources said. * OSP - Malaysia's Petronas has set the official selling price of Tapis crude TAP-OSP for April at $129.03 a barrel, down $4.95 from the previous month, a trade source said. - Vietnam's PV Oil has set the Su Tu Den OSP for July to December at a premium of $6 a barrel to the Minas formula. * TENDERS - Malaysia's Petronas sold 300,000 barrels of Cakerawala condensate for loading in June at a discount on weak naphtha cracks and ample supply, traders said. The cargo to load on June 13-22 was sold to a trader at a discount of about $2 a barrel to dated Brent, they said. * MARKET NEWS - Russian oil production edged down 0.3 percent to 10.33 million barrels per day (bpd) in April, to its lowest this year, after Gazprom trimmed output due to a refinery maintenance closure, energy ministry data showed. - Kuwait Oil Tanker Co will start building six oil and gas tankers in 2014 and receive nine others as part of a deal with South Korea's Daewoo Shipbuilding & Marine Engineering 042660.KS, state-run news agency KUNA said. CRUDE Price Prev Change JUNE Brent 119.65 119.47 0.18 JUNE Brent/Dubai EFS DUB-EFS-1M 3.63 3.65 -0.02 PRODUCT CRACKS Price Prev Change JUNE fuel oil crack -4.23 -4.74 0.51 JUNE gasoil crack 17.18 17.17 0.01 JUNE naphtha crack -11.09 -9.66 -1.43 COMPLEX REFINERY MARGINS Today 8.37 Last 5 days 8.43 Last 365 days 7.72

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