SINGAPORE, Oct 8 (Reuters) - Asia's cash differentials for 10 ppm gasoil strengthened to their narrowest discounts in more than a month on Thursday, while middle distillate inventories in Singapore dropped to a six-week low. Cash discounts for gasoil with 10 ppm sulphur contentwere at 51 cents a barrel to Singapore quotes, the smallest since Sept. 1. They were at 54 cents a barrel on Wednesday. Refining margins or cracks for 10 ppm gasoil dropped 55 cents to $4 a barrel over Dubai crude during Asian trading hours, partly hurt by firmer raw material crude prices. Meanwhile, jet fuel cracks in Singapore were at $1.65 per barrel over Dubai crude, down from $2.05 per barrel a day earlier. The frailty in jet fuel demand has been prompting refiners to blend the aviation fuel grade into the gasoil pool for quite some time now, and industry analysts said the blending would likely continue for a major part of next year as well. The regrade, the price spread between jet fuel and gasoil, for November stood at a discount of $1.55 per barrel on Thursday, Refinitiv Eikon data showed. INVENTORIES - Singapore's middle distillate inventories dropped 2.8% to 14.8 million barrels in the week to Oct. 7, according to Enterprise Singapore data. - Weekly Singapore middle distillate inventories have averaged about 13.4 million barrels so far in 2020, Reuters calculations showed. This week's stocks were 27.9% higher year-on-year. - U.S. distillate stockpiles fell by 962,000 barrels in the week to Oct. 2, in line with expectations, the U.S. Energy Information Administration data showed on Wednesday. SINGAPORE CASH DEALS - No jet fuel trades, no gasoil deals OTHER NEWS - European diesel markets have recovered this month from historic lows, as regional refineries shut for maintenance and Russian exports drop, helping to offset persistently weak demand. European refiners have pinned their hopes on a busy maintenance season to reduce high storage levels built during coronavirus-related lockdowns. - Oil rose above $42 a barrel on Thursday, supported by output shutdowns in the U.S. Gulf of Mexico and the prospect of more supply losses in Norway, as well as by hopes for some U.S. coronavirus relief aid. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 43.90 -0.20 -0.45 44.10 GO 0.5 Diff -1.72 0.03 -1.71 -1.75 Spot Gas Oil 0.25% 44.31 -0.19 -0.43 44.50 GO 0.25 Diff -1.31 0.03 -2.24 -1.34 Spot Gas Oil 0.05% 44.52 -0.19 -0.42 44.71 GO 0.05 Diff -1.10 0.03 -2.65 -1.13 Spot Gas Oil 0.001% 45.11 -0.19 -0.42 45.30 GO 0.001 Diff -0.51 0.03 -5.56 -0.54 Spot Jet/Kero 42.60 -0.21 -0.49 42.81 Jet/Kero Diff -0.57 -0.05 9.62 -0.52 For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 Gasoil M1 Gasoil M1/M2 Gasoil M2 Regrade M1 Regrade M2 Jet M1 Jet M1/M2 Jet M2 Gasoil 500ppm-Dubai Cracks M1 Gasoil 500ppm-Dubai Cracks M2 Jet Cracks M1 Jet Cracks M2 East-West M1 East-West M2 LGO M1 LGO M1/M2 LGO M2 Crack LGO-Brent M1 Crack LGO-Brent M2 (Reporting by Koustav Samanta; Editing by Subhranshu Sahu)
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