OIL PRODUCTS: Indian Diesel Exports To Southeast Asia Surge In May
May-30 07:56
India’s diesel exports to Southeast Asia for May are set to hit the highest in at least four years, as higher freight costs deterred shipments to Europe, Reuters reports.
- Increased diesel from India is cooling spot premiums for the fuel in Asia and pressuring derivatives markets, while tightening the fuel’s availability in Europe and supporting prices there.
- Shipments on the India-Southeast Asia route climbed to 600k tons (4.47m bbls) this month, levels last seen at the end of 2021, according to Kpler data cited by Reuters.
- Most volumes were destined for Singapore or Malaysia.
- Indian diesel bound for Europe in May was estimated at 500k tons.
- Lower shipping costs helped push more Indian supply to Southeast Asia.
- The cost for chartering a vessel carrying 40k tons of diesel from India to NW Europe rose to $2.35m in the past week, compared to less than $1m on the India Singapore route.
- India’s diesel production also rose in May after Reliance restarted a crude unit at the Jamnagar refinery, Reuters adds.
- India will probably export more diesel next month as local demand is set to fall during the monsoon season, traders told Reuters, with one estimating that demand could drop by 500k tons or more.
Source: Reuters
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| Jul-25 | 1.791 | -37.6 |
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| Source: MNI/Bloomberg. | ||
