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Business Standard
5 days ago
- Business
- Business Standard
India's May diesel exports to SE Asia hit multi-year high on strong margins
Increased diesel from India, one of the largest suppliers in the region, is cooling spot premiums for the fuel in Asia Reuters India's diesel exports to Southeast Asia for May are set to hit the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia while higher freight costs deterred shipments to Europe. Increased diesel 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 Indian supplies has prompted June ICE gasoil prices to rise, he added. Asian cash premiums for 10-ppm sulphur diesel fell to seven-week lows of 20 cents per barrel early this week while refining margins have been struggling to hold above $16 per barrel, LSEG data showed. ARBITRAGE The average discounts for the east-west price spread for April and May were at $22 and $20 per ton, respectively, LSEG data showed, with traders saying such levels were slightly more profitable for sellers to sell east instead of west. Lower shipping costs also helped push more Indian supply to Southeast Asia, they added. Cost for chartering a medium-range vessel carrying 40,000 tons of diesel on the India-Northwest Europe route jumped to $2.35 million in the past week, equivalent to $59 per ton, up from $2.05 million last month, SSY Tanker data on LSEG Workspace showed. In comparison, shipping fees for a similarly-sized vessel on the India-Singapore route were less than $1 million, the data added. India's diesel production also rose in May after Reliance Industries restarted a crude unit at the Jamnagar refinery, leading to more exports, said Vortexa's head of APAC analysis Ivan Mathews. Next month, India will probably export more diesel as local demand is set to fall during the monsoon season, two Singapore-based trade sources said. One of them estimated that demand could drop by 500,000 tons or more.
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First Post
5 days ago
- Business
- First Post
India's May diesel exports to SE Asia hit multi-year high on higher margins
India's diesel exports to Southeast Asia in May will hit a four-year high, cooling spot premiums and pressuring derivatives markets. Shipments reached 600,000 metric tons. read more India's diesel exports to Southeast Asia for May are set to hit the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia while higher freight costs deterred shipments to Europe. Increased diesel 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 Indian supplies has prompted June ICE gasoil prices to rise, he added. Asian cash premiums for 10-ppm sulphur diesel fell to seven-week lows of 20 cents per barrel early this week while refining margins have been struggling to hold above $16 per barrel, LSEG data showed. ARBITRAGE The average discounts for the east-west price spread for April and May were at $22 and $20 per ton, respectively, LSEG data showed, with traders saying such levels were slightly more profitable for sellers to sell east instead of west. Lower shipping costs also helped push more Indian supply to Southeast Asia, they added. Cost for chartering a medium-range vessel carrying 40,000 tons of diesel on the India-Northwest Europe route jumped to $2.35 million in the past week, equivalent to $59 per ton, up from $2.05 million last month, SSY Tanker data on LSEG Workspace showed. In comparison, shipping fees for a similarly-sized vessel on the India-Singapore route were less than $1 million, the data added. India's diesel production also rose in May after Reliance Industries restarted a crude unit at the Jamnagar refinery, leading to more exports, said Vortexa's head of APAC analysis Ivan Mathews. Next month, India will probably export more diesel as local demand is set to fall during the monsoon season, two Singapore-based trade sources said. One of them estimated that demand could drop by 500,000 tons or more. (Except headline, this story has not been edited by Firstpost staff)
Reuters
24-03-2025
- Business
- Reuters
US jet fuel imports surge as Nigeria's Dangote refinery pushes barrels west
NEW YORK, March 24 (Reuters) - U.S. jet fuel imports are set to hit a two-year high in March after Nigeria's Dangote refinery pushed barrels to North America, which should lower prices of the aviation fuel in the peak summer travel season, trade analysts and storage brokers said. The shipments by the 650,000 barrels-per-day (bpd) Dangote refinery, Africa's largest, highlight its potential to reshape global fuel trading dynamics by creating a new swing supplier in the Atlantic Basin. It has already shown signs of success in competing with European refiners on gasoline exports, and the jet fuel shipments to the United States could challenge domestic producers' economics in the largest fuel consuming nation. Six vessels carrying about 1.7 million barrels of jet fuel from the Dangote refinery arrived at U.S. ports this month, data from ship-tracking service Kpler showed. Another vessel, Hafnia Andromeda, is set to arrive at the Everglades terminal on March 29 with a load of about 348,000 barrels of jet fuel, the data showed. Total U.S. jet fuel imports so far in March stood at around 226,000 bpd, the most since February 2023, the data showed. The Dangote refinery started production last January after years of construction delays, and ramped up to about 85% of capacity in early February, allowing it to sell more fuel to international markets. Dangote is unlikely to be a regular jet fuel supplier to the U.S., but a maintenance-related shutdown of the Phillips 66 (PSX.N), opens new tab Bayway refinery in New Jersey helped open a rare arbitrage opportunity for flows from Nigeria to the U.S., Sparta Commodities analyst James Noel-Beswick said. The window is likely to close soon or shrink significantly due to elevated U.S. inventories of the aviation fuel, Noel-Beswick added. Demand to lease storage tanks for jet fuel in Houston and New York Harbor in April is averaging around 700,000 barrels on storage broker TankTiger's platform, five to six times the average monthly demand, TankTiger Chief Operating Officer Steven Barsamian said. The surge in demand, partly due to the influx of supply from Nigeria, is likely to lower jet fuel prices in the U.S. ahead of peak summer travel season, Barsamian said. Despite lower prices, air travel over the summer could be dampened by economic headwinds from a stock market selloff and waning consumer confidence, Sparta's Noel-Beswick said. U.S. jet fuel stocks ended February at 45.2 million barrels, the highest for the month since 1999, data from the U.S. Energy Information Administration showed. U.S. refiners' yield of jet fuel hit a record, opens new tab last year, reflecting stronger demand relative to other transportation fuels, the EIA said on Monday. The agency expects U.S. jet fuel consumption to touch a record in 2026.
