India’s diesel exports to Singapore are set to exceed 330,000 metric tons, hitting a 19-month high in August, supported by cheaper freight costs and low inventories in the Asian oil hub.
The country’s exports of the fuel for August to Europe, on the other hand, are poised to fall to their lowest this year, according to one shiptracker, as shipments to the east are more profitable, but that situation may not last.
The rise in Indian diesel exports to Singapore will compensate partially for lower exports from refiners in northeast Asia including China, and the increased availability will therefore cap strong refining margins in Asia. Conversely, European refiners’ margins will be supported by the lower imports from the South Asian nation.
India is on track to ship between 330,000 and 439,000 tons of diesel in August to Singapore, shiptracking data from Refinitiv, Vortexa and Kpler showed. The volume is the highest since January 2022, said Serena Huang, Vortexa’s head of Asia-Pacific analysis.
