SINGAPORE, Oct 28 (Reuters) - Asian refining margins for 10 ppm gasoil rose on Wednesday, lifted by steady demand from China and India, but traders were concerned the market for the industrial fuel would likely remain amply supplied for the remainder of this year. Refining margins or cracks for 10 ppm gasoil rose by 11 cents to $3.02 a barrel over Dubai crude during Asian trade, partly helped by weaker raw material crude prices. Limited scopes for arbitrage opportunities are keeping the gasoil barrels trapped within the region, traders said. The exchange of futures for swaps (EFS), which determines the gasoil price spread between Singapore and Northwest Europe, traded around minus $6 per tonne on Wednesday. Arbitrage is usually profitable when the EFS trades at about minus $15 a tonne or below, though it also depends on other factors such as freight rates, according to traders. "Currently, for November, the arbs to the West are still closed. So likely barrels from the Arab Gulf or West Coast of India will point to the Singapore Strait," a Singapore-based trader said. "But in December, there might be a chance of arbs opening, and that might put a bottom to the (current) weakness," he added. Cash discounts for gasoil with 10 ppm sulphur contentnarrowed by a cent to 58 cents a barrel to Singapore quotes on Wednesday. INVENTORIES - Middle-distillate inventories in the Fujairah Oil Industry Zone climbed 9.8% to 4.3 million barrels in the week ended Oct. 26, data via S&P Global Platts showed. - The weekly stocks in Fujairah have averaged 3.9 million barrels so far in 2020, compared with the weekly average of 2.4 million barrels in 2019, Reuters calculations showed. - U.S. distillate stockpiles rose by 5.3 million barrels, compared with expectations for a draw of 2.1 million barrels, data from industry group the American Petroleum Institute (API) showed on Tuesday. SINGAPORE CASH DEALS - No jet fuel trade, no gasoil deals OTHER NEWS - China's domestic aviation fuel consumption rebounded to near pre-COVID levels in September, thanks to a fast recovery in passenger travel and cargo freight, although demand from international flights remained weak, industry sources said. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 41.28 -0.45 -1.08 41.73 GO 0.5 Diff -1.48 0.01 -0.67 -1.49 Spot Gas Oil 0.25% 41.58 -0.45 -1.07 42.03 GO 0.25 Diff -1.18 0.01 -0.84 -1.19 Spot Gas Oil 0.05% 41.78 -0.45 -1.07 42.23 GO 0.05 Diff -0.98 0.01 -1.01 -0.99 Spot Gas Oil 0.001% 42.18 -0.45 -1.06 42.63 GO 0.001 Diff -0.58 0.01 -1.69 -0.59 Spot Jet/Kero 40.15 -0.76 -1.86 40.91 Jet/Kero Diff -0.63 -0.01 1.61 -0.62 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 Rashmi Aich)
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