Indian refiners: India’s diesel exports to Europe see almost three-fold soar in February

Indian refiners exported 204,000 barrels per day (bpd) of diesel to Europe in February, up from 56,000 bpd in January, based on vitality cargo tracker Vortexa. The sharp rise in provides to Europe elevated India’s total exports of diesel to 600,000 bpd in February, up from 450,000 bpd in January. No diesel was exported to the US and provides to different locations remained regular in February.

“The east-west arbitrage re-opened in February, partly supported by extra European refiners heading into upkeep. India’s diesel exports to the US have historically been minimal on account of ample provides within the US,” stated Serena Huang, an analyst at Vortexa.

Amid the specter of Houthi assaults on ships, a big share of diesel exports to Europe was diverted to transit by way of the Cape of Good Hope, avoiding the Purple Sea and the shorter Suez Canal. The longer route means greater freight. This mixed with weak east-west arbitrage helped appeal to extra Indian diesel cargoes to Asia in January.

Nevertheless, the state of affairs modified in February as margins within the European market expanded to develop into engaging for Indian refiners even after factoring within the elevated freight.

India’s total refined product exports in February totalled 1.39 million barrels a day (mbd), up 23% from January, with the rise in exports primarily headed to Northwest Europe, stated Huang.Exports of refined merchandise to Europe rose 120% to 310,000 bpd in February, whereas provides to the US almost halved to 56,000 bpd. Exports to Asia remained regular at round 400,000 bpd.”India primarily exports gasoline mixing parts to the US east coast. Given ample provides from Europe and domestically, mixed with bearish demand and excessive freight prices, it has not been worthwhile for Indian refiners to export mixing parts to the US,” stated Huang.

Petrol and diesel account for two-thirds of India’s annual exports of refined merchandise. Refiners additionally export jet gas, naphtha, vacuum fuel oil and gas oil. India primarily imports LPG and pet coke.