India's diesel exports to Southeast Asia for May are expected to be the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in
India's diesel exports to Southeast Asia for May are expected to be the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia and as higher freight costs deterred shipments to Europe.
Increased diesel exports from India, one of the largest suppliers in the region, 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 600,000 metric tons (4.47 million barrels) or more this month, shiptracking data from LSEG, Kpler, Vortexa and two trade sources showed.
Such levels were last seen at the end of 2021, Kpler data showed.
Most volumes were destined for Singapore or Malaysia, the data showed.
Meanwhile, Indian diesel bound for Europe in May was estimated at 500,000 tons, LSEG data showed.
"The re-direction of Indian diesel barrels east has had a two-fold effect," said Sparta Commodities analyst James Noel-Beswick.
"First, it has flooded the Singapore market, leading to a swift rebound in local inventories and applying downward pressure on diesel spreads since late April," he said.
For Europe, the drop in
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