SINGAPORE, Nov 6 (Reuters) - Asia's middle distillates markets declined as a knee-jerk reaction against a backdrop of softening energy prices amid the U.S. election, with an air of caution over December supply-demand fundamentals emerging.

On the diesel front, supplies are expected to remain sufficient in December despite an expected dip in China's export barrels, as some key refiners bring their refining units back online after maintenance.

The likelihood of further run cuts in northeast Asia is low now because of a recovery in margins, there could be refinery run increases instead, one trade source said.

Singapore's complex refining margins were near a three-month high of around $6.7 a barrel, erasing most of earlier losses. DUB-SIN-REF

Demand remains a question mark for now, though high-sulphur markets will still see buying interest.

For jet fuel markets, earlier positivity turned shaky as some traders were now concerned about November being oversupplied in Asia, given the talks of quota changes by one key China oil major being confirmed already.

A deluge of Middle East and India origin barrels is still bound for southeast Asia, ship-tracking data and data from trade sources showed, some of which cannot be digested by a few northeast Asian buyers because of specification issues.

However, the arbitrage between Asia and the U.S. West Coast is still supportive and that could still buoy demand, though things could flip again in December, one trade source said.

Asian jet fuel exports to the U.S. are slated to hit a six-month high in November, Kpler shiptracking data showed.

Cash premiums for jet fuel JET-SIN-DIF fell to slightly more than a two-week low of 66 cents a barrel reflecting the cautiousness in jet fuel markets.

At the market's close, refining margins GO10SGCKMc1 for 10ppm sulphur gasoil were little changed, holding its ground at around $16 a barrel.

Cash differentials GO10-SIN-DIF for 10ppm sulphur gasoil reversed some of the previous session's gains and fell to $1.16 a barrel, despite some firm buying interest emerging from Ampol on the trading window.

Regrade JETREG10SGMc1, however, still traded firmer at a premium of 95 cents a barrel, given the increasing worries of rising gasoil supplies in comparison with jet fuel.

SINGAPORE CASH DEALS O/AS

- One gasoil deal, no jet fuel deal

INVENTORIES

- U.S. crude oil stocks rose while fuel inventories fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. EIA/S

- Middle distillates stockpiles at Fujairah Oil Industry Zone were little changed at 1.89 million barrels for the week ended Nov. 4, according to industry information service S&P Global Commodity Insights. FUJAIRAH/

NEWS

- Discounts on Iranian crude oil sold to China are at their tightest in around five years as lower exports drive up prices amid concerns that Middle East tensions may disrupt supply, trading sources said.

- Iraq's cabinet said on Tuesday it had ordered the semi-autonomous Kurdish region to immediately transfer its oil output to the country's state-run firm SOMO.

- Oil and gas producers began shutting in U.S. Gulf of Mexico output and pulling workers off platforms on Tuesday ahead of a late hurricane season storm threatening offshore fields.

PRICES

(Reporting by Trixie Yap; Editing by Tasim Zahid)

((trixie.yap@thomsonreuters.com;))