SINGAPORE, Aug 26 (Reuters) - Asian refining margins for jet fuel dropped on Wednesday, stooping to their weakest in over three months, as international aviation demand was muted across the region with most of long-haul flights still grounded due to prolonged coronavirus-led border restrictions. Refining margins, also known as cracks, for jet fuel were at a discount of 75 cents a barrel to Dubai crude during Asian trading hours, the lowest since May 29. They were at minus 54 cents a day earlier. Cracks for the aviation fuel, the worst hit among refined oil products, have remained in the negative territory for the past five straight sessions. While some traders expect aviation demand to find support once countries start relaxing border restrictions, some others believe that might not be enough to help push up the jet fuel market in the short term. "On the whole, individual countries are experiencing either minor improvements in capacity, or minor deteriorations, each week as airlines look for changing demand or respond to enhanced lockdown measures," aviation data firm OAG said in a statement. "Perhaps worryingly, some major markets which had shown signs of recovery are now showing signs of weakening with scheduled flights down further this week," the firm said. Scheduled flights in Indonesia were down 34.9% year on year in the week to Monday, compared with 29.1% lower in the preceding week, while India's flights were 60.5% lower than the corresponding period last year, as against 58.8% weaker in the previous week, OAG data showed. Cash discounts for jet fuelwere at 50 cents a barrel to Singapore quotes on Wednesday, compared with the 43-cent discount on Tuesday. INVENTORIES - Middle-distillate inventories in the Fujairah Oil Industry Zone climbed 22% to 4.1 million barrels in the week ended Aug. 24, data via S&P Global Platts showed. FUJAIRAH/ - The weekly stocks in Fujairah have averaged 3.9 million barrels so far in 2020, compared with a weekly average of 2.4 million barrels in 2019, Reuters calculations showed. - Meanwhile, U.S. distillate fuel inventories rose by 2.3 million barrels, compared with expectations for a draw of 726,000 barrels, data from industry group the American Petroleum Institute (API) showed on Tuesday. SINGAPORE CASH DEALS - No gasoil deals, no jet fuel trades ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 48.07 0.34 0.71 47.73 GO 0.5 Diff -2.28 0.01 -0.44 -2.29 Spot Gas Oil 0.25% 48.30 0.37 0.77 47.93 GO 0.25 Diff -2.05 0.04 -1.91 -2.09 Spot Gas Oil 0.05% 48.38 0.34 0.71 48.04 GO 0.05 Diff -1.97 0.01 -0.51 -1.98 Spot Gas Oil 0.001% 50.05 0.33 0.66 49.72 GO 0.001 Diff -0.30 0.00 0.00 -0.30 Spot Jet/Kero 44.01 0.20 0.46 43.81 Jet/Kero Diff -0.50 -0.07 16.28 -0.43 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 Aditya Soni)
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