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India’s diesel shipments to Singapore reached record highs in August, while those to Europe decreased
Due to lower freight costs and low inventory levels in the Asian oil hub, India’s diesel shipments to Singapore are expected to reach a 19-month high in August and surpass 330,000 metric tonnes, according to traders and experts.
On the other hand, while shipments to the east are more profitable, the nation’s petroleum exports to Europe for August are anticipated to drop to their lowest levels this year, according to one ship tracker, although that condition may not persist.
As a result of the increase in Indian diesel exports to Singapore, which will partially offset the decline in exports from refiners in northeast Asia, particularly China, the region’s high refining margins will be capped. In contrast, the decrease in imports from the South Asian country will help to strengthen the margins of European refiners.
According to shiptracking data from Refinitiv, Vortexa, and Kpler, India is on schedule to send Singapore between 330,000 and 439,000 tonnes of diesel in August.
Serena Huang, the head of Asia-Pacific analysis at Vortexa, said that the volume is at its highest level since January 2022.
“The seasonal lull in India’s gasoline and diesel domestic demand due to the monsoon has seen the country raising its clean product exports for August to date,” she said, referring to refined products such as diesel, jet fuel, and gasoline.
According to statistics from Sparta Commodities, freight rates for the India-Singapore route were around $21 per tonne less expensive than those for the India-northwest Europe route in July, down from $14 per tonne in mid-July, making it more profitable for sellers to transport cargoes east.
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