* Traders expect tight supply in summer due to prolonged war

* Asian gasoline margin quadruples from pre-war to about $37/bbl

By Mohi Narayan and Ahmad Ghaddar

NEW DELHI/LONDON, March 23 (Reuters) - European and U.S. gasoline

cargoes are heading to the Asia Pacific after Asian prices surged on tightening

supply due to the U.S.-Israeli war with Iran, according to trade sources and

shipping data.

The war has disrupted crude and oil product shipments from the Middle East

to Asia, causing Asian refineries to cut output and forcing fuel distributors to

seek supply from as far as the United States and buy more Russian fuel.

The extra shipping costs will exacerbate already soaring fuel prices for

consumers and businesses.

At least three gasoline cargoes totalling about 1.6 million barrels have

loaded last week from Europe for Asia, according to traders and ship tracking

data from Kpler, as companies including Vitol and TotalEnergies ship

the fuel to the East to cash in on better margins in Asia.

Vitol and TotalEnergies declined to comment.

Earlier, Exxon Mobil ( XOM ) booked U.S. gasoline cargoes for Australia.

Europe typically only sends small parcels of gasoline to the East of Suez

markets, while its key markets are the U.S., Latin America and West Africa.

Asian refiners' profits from making a barrel of gasoline from

Brent crude are hovering near 2022 highs of about $37 a barrel over Brent crude

last week versus $8 before the war.

"One key factor is refinery behaviour under crude supply uncertainty. As

disruptions around the Strait of Hormuz increase feedstock risk, some refiners

are becoming more cautious about run rates or export commitments," Nithin

Prakash, analyst at consultancy Rystad Energy, said.

Even if inventories currently appear comfortable, lower refining throughput

could tighten the supply outlook and support gasoline margins, he said.

Singapore inventories of light distillates, which include gasoline and

naphtha, are about 6% higher than the same time last year, at 17.93 million

barrels, LSEG data showed. REGIONAL SUPPLY FALLS

Gasoline supply from within the region is falling as shipments from top fuel

exporter South Korea are expected to drop to between 5 million and 6 million

barrels in March from a three-month average of about 10 million barrels,

preliminary Kpler and LSEG data showed.

China, another big supplier, has banned fuel exports to shore up its

domestic market. Thailand and Vietnam have also restricted fuel exports.

Traders are now pinning their hopes on Asia's second largest fuel exporter,

India, which typically sends about 40% of its monthly shipments of between 7

million and 8 million barrels to the Middle East, to pivot to the East.

India typically sends about 22% of its gasoline to Asia, LSEG data showed.

However, the country's gasoline exports have plummeted to about 5 million to 6

million barrels in March from around 12 million barrels last month, preliminary

LSEG and Kpler data showed, as state-run Mangalore Refinery and Petrochemicals

has temporarily suspended cargo loadings.

Vessel Load port Discharge Volume Load Charterer

port (bbl) date

Maui Ventspils Singapore 770,000 March 18 Vitol

Metro Mistral Amsterdam Karachi 500,000 March 14 TotalEnergies

ST Connaught Amsterdam Singapore 400,000 March 17 NA

Source: Kpler and shipping data from traders