SINGAPORE, Oct 30 (Reuters) - Asia's cash discount for 10 ppm gasoil narrowed on Friday, thanks to a firmer deal in the physical market, but surging coronavirus cases across the globe are expected to hurt short-term demand for the industrial and transportation fuel, traders said. Cash discounts for gasoil with 10 ppm sulphur contentnarrowed to 49 cents a barrel to Singapore quotes, compared with a 53-cent discount a day earlier. Refining margins or cracks for 10 ppm gasoil rose to $3.64 a barrel over Dubai crude during Asian trade, up from $3.42 per barrel on Thursday. The cracks for the benchmark gasoil grade, which have risen about 46% this week, however, remain at their weakest seasonal levels on record. Run cuts at some refineries as well as steady domestic demand in China and India have helped tighten the market to an extent, but traders remain concerned that there would still be abundant supplies for the rest of the year as Chinese exports are expected to stay elevated in the near term. China's gasoil exports in October are likely to close at around 1.5 million tonnes, compared with 1.19 million tonnes in September, Refinitiv oil research assessments showed. A majority of these Chinese export barrels are bound for Singapore, at 471,000 tonnes, and Australia, at 308,000 tonnes, according to the assessments. The front-month time spread for the benchmark 10ppm gasoil in Singapore, which has stayed in a contango structure since late-July, traded at a discount of 49 cents a barrel on Friday. ARA STOCKS - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped 5.9% to 2.6 million tonnes in the week to Oct. 29, data from Dutch consultancy Insights Global showed. - The data showed ARA jet fuel inventories jumped 7.4% to a record 1.2 million tonnes. - Compared with a year earlier, ARA gasoil inventories were down 1.1%, while jet fuel stocks were about 61% higher. SINGAPORE CASH DEALS - No jet fuel trade, one gasoil deal. OTHER NEWS - Oil traders are scouting for newly built supertankers to store diesel for the next few months as they brace for lower demand in Europe amid renewed restrictions aimed at battling the COVID-19 pandemic, shipping and trade sources said. - Asian refiners are expected to raise their oil products output in the fourth quarter to meet peak winter demand, but a gasoline supply deficit is likely as refineries prioritise production of other fuels with higher profits, analysts say. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 39.85 -0.84 -2.06 40.69 GO 0.5 Diff -1.50 0.01 -0.66 -1.51 Spot Gas Oil 0.25% 40.15 -0.84 -2.05 40.99 GO 0.25 Diff -1.20 0.01 -0.83 -1.21 Spot Gas Oil 0.05% 40.35 -0.84 -2.04 41.19 GO 0.05 Diff -1.00 0.01 -0.99 -1.01 Spot Gas Oil 0.001% 40.87 -0.80 -1.92 41.67 GO 0.001 Diff -0.49 0.04 -7.55 -0.53 Spot Jet/Kero 39.18 -0.60 -1.51 39.78 Jet/Kero Diff -0.60 -0.01 1.69 -0.59 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 Devika Syamnath)
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