Russia is particularly slashing exports, especially of the largest selling medium heavy Ural blend, to support global prices and to meet domestic demand for diesel.
Russia is curbing both crude and some refined exports, which coupled with summers in northern hemisphere offers opportunities for Indian refiners, particularly private sector, to supply gasoil to Europe.
Reduction in medium (heavy) crude availability puts Indian refiners in a “very strong position” against their regional peers, as tightening availability of crude, suitable for conversion operations, will inevitably weigh on margins and operational rates. From that perspective, India’s relationship with Russia will only become stronger going forward, as it offers Indian refiners a great opportunity to maximise their margins. During April-May FY23, India’s exports of automotive diesel fuel to the EU countries rose to around $1.2 billion compared to $560 million a year-ago.
