SINGAPORE, Oct 9 (Reuters) - Asian refining margins for jet fuel dipped on Friday, but posted a sixth consecutive weekly gain, buoyed by an uptick in seasonal demand for kerosene on the back of tighter supplies due to ongoing run cuts at regional refineries. Refining profit margins, also known as cracks, for jet fuel slipped 13 cents to $1.52 per barrel over Dubai crude during Asian trading hours on Friday. The cracks, however, have gained 16.9% this week. Winter months in Northeast Asia, especially Japan, which uses heating kerosene to fend off chill, typically props up jet fuel refining margins as the fuels belong to the same grade of oil products with jet margins determining the profitability of both. Some weather models are projecting colder-than-normal temperatures in Japan during this year's winter, and traders hope the seasonal stockpiling of kerosene in Japan and South Korea would provide a cushion to the jet fuel cracks in coming weeks. Although analysts expect the cracks to moderately strengthen over 2021 as countries ease travel restrictions and more grounded flights return to the skies, market watchers believe jet fuel margins would still take years to return to pre-pandemic levels. Consultancy FGE estimates jet fuel margins to gradually climb to around $6 a barrel over Dubai crude by the end of 2021. But that would still be about 60% weaker than the 2019 average of $14.96 per barrel. Cash discounts for jet fuelremained unchanged at 57 cents a barrel to Singapore quotes on Friday. ARA STOCKS - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose 4.3% to 2.9 million tonnes in the week to Oct. 8, data from Dutch consultancy Insights Global showed. - The data showed ARA jet fuel inventories rose 5.6% to 998,000 tonnes. - Compared with a year earlier, ARA gasoil inventories were up 5.8%, while jet fuel stocks were about 56% higher. SINGAPORE CASH DEALS - One jet fuel trade, no gasoil deals OTHER NEWS - Gasoline exports from China, Asia's top petrol exporter, are set to stay elevated this month as mounting supplies from recent high crude oil processing runs prompt fuel sellers to offload cargoes abroad, industry sources said. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 44.74 0.84 1.91 43.90 GO 0.5 Diff -1.71 0.01 -0.58 -1.72 Spot Gas Oil 0.25% 45.15 0.84 1.90 44.31 GO 0.25 Diff -1.30 0.01 -0.76 -1.31 Spot Gas Oil 0.05% 45.36 0.84 1.89 44.52 GO 0.05 Diff -1.09 0.01 -0.91 -1.10 Spot Gas Oil 0.001% 45.94 0.83 1.84 45.11 GO 0.001 Diff -0.52 -0.01 1.96 -0.51 Spot Jet/Kero 43.17 0.57 1.34 42.60 Jet/Kero Diff -0.57 0.00 0.00 -0.57 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 Shailesh Kuber)
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