UPDATE 1-Asia imports of W.Africa crude to hit 3-year high

* Asia buys 53 W.Africa crude cargoes in Aug vs 43 in July

* Asian imports from W.Africa in Aug highest since Mar 2006

* Higher refining capacity, lower freight rates drive demand

LONDON, July 30 - Asian imports of West African crude oil were expected to reach 1.62 million barrels per day (bpd) in August, trade sources said on Thursday, the highest monthly volume since March 2006 according to Reuters data.

Trade and industry sources said Asian buying was boosted by increased Chinese and Indian refining capacity, lower freight rates and the relative value of West African grades against regional crudes.

"There are new refineries opening up and coming out of maintenance and we've seen better arbitrage to the east. If China is going to lead us out of this recession, the buying should continue," one physical crude oil trader said.

Asian countries were expected to import 53 cargoes of crude oil from Nigeria, Angola and other West African countries in August, up from 43 cargoes, or 400,000 bpd in July.

The survey of oil trading firms showed around 29 cargoes sailing to China in August, up from 28 in July, while India was expected to import 19 West African crude cargoes, up from 10 the previous month.

The boom in Asian buying of non-regional grades has been supported by attractive arbitrage economics. Freight rates remained relatively low and crude priced against Brent was better value.

Front-month Brent crude <LCOc1>, the benchmark for West African crude, has swung from a $5 premium above Asian benchmark Tapis APPI in April to a more than $5 discount in June and July, making West African crudes better value for Asian buyers.

Indian demand for West African crude, mainly Nigerian grades in August, was encouraged by cheap freight rates with state-oil companies, including Indian Oil Corp and Hindustan Petroleum Corp, buying over a dozen cargoes via tenders.

More readily available West African supplies have also been seen as an alternative to some Middle Eastern grades, restricted by supply curbs set by the Organization of the Petroleum Exporting Countries (OPEC).

The number of West African barrels moving east was expected to rise in the future as economic recovery accelerates in China and other Asian economies with regional supplies struggling to meet demand.

Crude demand in the Asia Pacific region will rise by more than 2.0 million bpd to 26.7 million bpd in 2014 versus this year -- with some three-quarters of that demand from China -- while regional supply will fall by 200,000 bpd over the same period to just 8.0 million bpd, the International Energy Agency estimated.

West African crude oil cargoes sailing to Asia

AUG JUL JUN COUNTRY CARGOES BPD CARGOES BPD CARGOES BPD CHINA 29 889,000 28 858,000 30 950,000 INDIA 19 582,000 10 306,000 14 443,000 INDONESIA 2 61,290 1 31,000 2 63,000 TAIWAN 2 61,290 4 123,000 4 127,000 KOREA 1 30,645 0 0 0 0 OTHERS 0 0 0 0 0 0 TOTAL 53 1.62 MLN 43 1.32 MLN 50 1.58 MLN .

The number of West African barrels moving east was expected to rise in the future as economic recovery accelerates in China and other Asian economies with regional supplies struggling to meet demand.

Crude demand in the Asia Pacific region will rise by more than 2.0 million bpd to 26.7 million bpd in 2014 versus this year -- with some three-quarters of that demand from China -- while regional supply will fall by 200,000 bpd over the same period to just 8.0 million bpd, the International Energy Agency estimated.

West African crude oil cargoes sailing to Asia

AUG JUL JUN COUNTRY CARGOES BPD CARGOES BPD CARGOES BPD CHINA 29 889,000 28 858,000 30 950,000 INDIA 19 582,000 10 306,000 14 443,000 INDONESIA 2 61,290 1 31,000 2 63,000 TAIWAN 2 61,290 4 123,000 4 127,000 KOREA 1 30,645 0 0 0 0 OTHERS 0 0 0 0 0 0 TOTAL 53 1.62 MLN 43 1.32 MLN 50 1.58 MLN (Editing by William Hardy