SINGAPORE, Oct 7 (Reuters) - Asian refining margins for jet fuel dipped on Wednesday after hitting a more than two-month high in the previous session as aviation demand continued to struggle amid surging COVID-19 cases in several countries. Refining profit margins or cracks for jet fuel in Singapore slipped 3 cents to $2.05 per barrel over Dubai crude during Asian trading hours. The cracks hit their strongest since July 28 on Tuesday, thanks to tightening supplies. The jet fuel cracks, which have gained about 58% since the end of last week, however, are at their weakest seasonal levels on record, Refinitiv Eikon data showed. Industry analysts said the profit margins were likely to remain a fraction of long-term averages for now as a substantial recovery in aviation demand was not expected until the second half of next year due to reimposed coronavirus restrictions in many markets. "Strict mitigation measures are being eased in certain markets... although those over the aviation sector will probably be the last ones to go, with imported cases posing real threats to undo individual government efforts to contain local outbreaks," said Peter Lee, a senior oil & gas analyst at Fitch Solutions. "Essential travels and select category of business travels are being permitted in more markets, but the same for leisure flights is perhaps not on the cards, until a vaccine is made available." Cash discounts for jet fuelwidened to 52 cents a barrel to Singapore quotes on Wednesday, compared with a 50-cent discount per barrel a day earlier. INVENTORIES - Middle-distillate inventories in the Fujairah Oil Industry Zone slipped 10.9% to 3.9 million barrels in the week ended Oct. 5, 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. - Meanwhile, U.S. distillate fuel inventories fell by 1 million barrels in the week to Oct. 2, compared with expectations for a draw of 995,000 barrels, data from industry group the American Petroleum Institute (API) showed on Tuesday. SINGAPORE CASH DEALS - No jet fuel trades, no gasoil deals OTHER NEWS - Oil prices fell on Wednesday after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected increase in U.S. crude inventories. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 44.10 1.35 3.16 42.75 GO 0.5 Diff -1.75 0.21 -10.71 -1.96 Spot Gas Oil 0.25% 44.50 1.35 3.13 43.15 GO 0.25 Diff -1.34 0.22 -14.10 -1.56 Spot Gas Oil 0.05% 44.71 1.14 2.62 43.57 GO 0.05 Diff -1.13 0.01 -0.88 -1.14 Spot Gas Oil 0.001% 45.30 1.14 2.58 44.16 GO 0.001 Diff -0.54 0.02 -3.57 -0.56 Spot Jet/Kero 42.81 0.46 1.09 42.35 Jet/Kero Diff -0.52 -0.02 4.00 -0.50 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;)
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