SINGAPORE, Oct 6 (Reuters) - Asia's cash differentials for jet fuel gained for a fourth consecutive session on Tuesday, to their smallest discounts in more than a month, helped by a pick up in buying interests in the physical market over the last week. Cash discounts for jet fuelwere at 50 cents a barrel to Singapore quotes on Tuesday, a level not seen since Aug. 26. The spot differentials were at a discount of 69 cents per barrel a day earlier. Refining margins, also known as cracks, for jet fuel in Singapore jumped to their highest in over two months, rising 66 cents on Tuesday to trade at $2.08 per barrel over Dubai crude during Asian trading hours. The jet profit margins have found support as run cuts at regional refineries helped drain out excess supplies, while Japan and South Korea have started stockpiling kerosene ahead of winter, when the fuel is used for residential heating. Winter months usually prop up jet fuel refining margins as kerosene belongs to the same grade of oil products, with jet margins determining the profitability of both. But with thousands of flights still grounded due to coronavirus restrictions, the persistent weakness in Asia's aviation market is expected to outweigh the demand boost from the uptick in seasonal kerosene consumption, industry analysts said. "Jet/kero margins will likely receive a small boost from winter residential heating demand in Northeast Asia... (But) it is a marginal boost, maybe just $1 per barrel in terms of the crack," JBC energy market analyst Philip Jones-Lux said. Until the global air fleet takes flight again in serious numbers, the overall outlook for jet fuel will remain pessimistic, traders and analysts said. SINGAPORE CASH DEALS - Two jet fuel trades, two gasoil deals OTHER NEWS - Oil prices gained on Tuesday due to fears that refineries could be hit by a storm brewing in the Gulf of Mexico, while buyers also drew relief from U.S. President Donald Trump's return to the White House after being treated for COVID-19 in hospital. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 42.75 1.32 3.19 41.43 GO 0.5 Diff -1.96 -0.06 3.16 -1.90 Spot Gas Oil 0.25% 43.15 1.32 3.16 41.83 GO 0.25 Diff -1.56 -0.06 4.00 -1.50 Spot Gas Oil 0.05% 43.57 1.32 3.12 42.25 GO 0.05 Diff -1.14 -0.06 5.56 -1.08 Spot Gas Oil 0.001% 44.16 1.45 3.39 42.71 GO 0.001 Diff -0.56 0.05 -8.20 -0.61 Spot Jet/Kero 42.35 2.16 5.37 40.19 Jet/Kero Diff -0.50 0.19 -27.54 -0.69 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 Ramakrishnan M.)
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