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Export of petroleum products falls to 15-month low in Jan
India’s export of petroleum products fell to a 15-month low at 1.02 million barrels a day in January as the escalating tensions over the Red Sea prompted exporters to hold back shipments last month, data from data intelligence firm Kpler showed.
January export volumes were the lowest since October 2022, when the country’s export of refined oil products stood at around 887,000 barrels a day, it added.
Moreover, India’s shipments to Europe declined in January as many tankers had opted for the longer route via the Cape of Good Hope for the delivery, resulting in higher shipping costs. Africa’s Cape of Good Hope shipping route can extend voyages for up to 14 days or beyond.
“To take just one specific example, the route from Jamnagar to Rotterdam takes 24 days via the Suez Canal and 42 days via the Cape of Good Hope,” Viktor Katona, lead crude analyst at Kpler said.
The United Arab Emirates, Netherlands, and Malaysia were among the top buyers of Indian petroleum products in January including diesel, jet fuel, gasoline, and naphtha among others. While UAE imported 103,690 barrels a day of refined fuels from India last month, Netherlands imported 75,411 barrels a day. Indian exports to Malaysia stood at 64,098 barrels a day.
Even with Russian oil cargoes departing from North Sea and Black Sea ports taking the Suez Canal-Red Sea route to India and China, its major buyers, have been secured so far, India’s exports have been hit transiting the Suez Canal.
The country’s export of petroleum products to Europe had dropped to just 100,000 barrel a day from 350,000-400,000 barrel a day in November and December, Katona had said. “Many tankers have instead opted for the longer route via the Cape of Good Hope for the delivery which has resulted in increased shipping costs,” he said. The shipping cost has increased by 60-70%.
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