SINGAPORE, Aug 28 (Reuters) - Asian refining margins for 10 ppm gasoil dropped further on Friday, posting a second consecutive weekly decline, weighed down by ample availability of supplies and subdued demand due to prolonged coronavirus lockdowns in several countries. Refining profit margins, also known as cracks, for 10 ppm gasoil dropped to $4.15 a barrel over Dubai crude during Asian trading hours, which is 39.5% lower than its value at the end of July, and the lowest level since June 5. The cracks have fallen 20% this week, Refinitiv Eikon data showed. Higher exports from key markets due to sluggish domestic demand is adding to the regional supplies, which are being trapped within the region due to lack of arbibrage opportunities, trade sources said. Gasoil exports from India are expected to close at about 2.2 million-2.3 million tonnes in August, Refinitiv oil research assessments showed, compared with 2.06 million tonnes last month. Meanwhile, China's August gasoil exports are forecast to close at 1.3 million-1.4 million tonnes, and are expected to increase into the fourth quarter as refiners work to exhaust their oil export quotas before the end of the year, the assessments showed. The exchange of futures for swaps (EFS), which determines the gasoil price spread between Singapore and Northwest Europe, traded around minus $5 per tonne on Friday, typically making it unprofitable for arbitrage shipments. Arbitrage is usually workable when the EFS trades at about minus $15 a tonne or below, though it depends on other factors such as freight rates as well, according to traders. Cash discounts for 10 ppm gasoilwere at 45 cents a barrel to Singapore quotes on Friday, compared with a discount of 35 cents per barrel a day earlier. ARA STOCKS - Jet fuel stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped 17.6% to 817,000 tonnes in the week ended Aug. 27, data from Dutch consultancy Insights Global showed. - The data showed ARA gasoil inventories rose 4% to 2.7 million tonnes. SINGAPORE CASH DEALS - Two 2500 ppm gasoil deals, no jet fuel trades OTHER NEWS - Spot prices for some Asian crude oil grades slipped into discounts to dated Brent due to subdued demand from refiners in the region, narrowing the price gap between low-sulphur crude and crudes from the Middle East, traders said. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 46.27 -1.37 -2.88 47.64 GO 0.5 Diff -2.32 -0.03 1.31 -2.29 Spot Gas Oil 0.25% 46.59 -1.33 -2.78 47.92 GO 0.25 Diff -2.00 0.01 -0.50 -2.01 Spot Gas Oil 0.05% 46.70 -1.27 -2.65 47.97 GO 0.05 Diff -1.89 0.07 -3.57 -1.96 Spot Gas Oil 0.001% 48.14 -1.44 -2.90 49.58 GO 0.001 Diff -0.45 -0.10 28.57 -0.35 Spot Jet/Kero 41.63 -1.42 -3.30 43.05 Jet/Kero Diff -1.13 -0.29 34.52 -0.84 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 Sherry Jacob-Phillips)
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