SINGAPORE- Asian refining margins for 10 ppm gasoil jumped on Wednesday, scaling to a fresh high on record, riding on tighter supplies and expectations for stronger arbitrage demand from the West. European diesel supplies have shrunk following the disruption of western sanctions imposed on Russia in response to its invasion of Ukraine, while trade sources said some Asian refineries plan to increase output in May to cash in on high prices for gasoil exports.

Refining margins, also known as cracks, for 10 ppm gasoil surged to a new record of $44.04 a barrel over Dubai crude during Asian trading hours, up from $31.56 per barrel a day earlier. Cracks for the benchmark gasoil grade in Singapore have more than doubled in the last week, Refinitiv data showed. Meanwhile, jet fuel refining margins jumped to $36.04 per barrel over Dubai crude on Wednesday, their strongest level on record, according to Refinitiv Eikon data that goes back to 2009. The jet cracks were at $24.42 per barrel on Tuesday.

Global jet fuel prices have surged to near 14-year highs in line with crude oil's surge on supply shortfall worries, slamming air carriers and travellers with steep cost increases just as air travel was starting to recover from COVID-19 restrictions.

Jet fuel prices in Europe and the United States have posted similar gains, leaving global carriers who have already been hammered by COVID-19 over the last two years having to pass on higher costs via fuel surcharges and increased fares.

Cash differentials for jet fuel climbed to a premium of $4.41 a barrel to Singapore quotes, while cash premiums for gasoil with 10 ppm sulphur content rose to $7.87 a barrel to Singapore quotes on Wednesday.

CHINA TO HALT APRIL FUEL EXPORTS

Beijing has told Chinese state refiners to consider suspending exports of gasoline and diesel in April as the Ukraine war sparks supply concerns, three sources with knowledge of the matter said on Wednesday.

(Reporting by Koustav Samanta; Editing by Shinjini Ganguli)