Our Bureau
Mumbai
India, a major fuel exporter in Asia, is projected to send between 157,000 and 224,000 barrels per day (bpd) of diesel and jet fuel to Singapore and Australia in July, according to estimates from LSEG, Vortexa, Kpler, and two trade sources. This would be the highest level since late 2021 and early 2022, representing a 30% increase from June.
The volume destined for Australia is expected to surge to over 450,000 metric tons, a more than two-year high, according to LSEG Oil Research. BP and Vitol shipped most of the volumes to Australia, where they have fuel distribution operations, while Shell sent cargoes to Singapore, as per Kpler and LSEG data.
Planned maintenance at Australian refineries has led local refiners to increase their spot cargo purchases, according to industry sources. Additionally, Australia’s rising imports are influenced by a government mandate effective July, requiring higher refined product stockpiles. Meanwhile, India’s middle distillates exports to Europe are projected to hit a six-month low of 142,000 barrels per day in July, as domestic supplies in Europe remain strong and demand weakens.
Europe’s imports from Asia have been limited due to strong domestic supplies and weaker-than-anticipated demand, analysts report. In response to rising freight rates on the India-Europe route, some traders redirected shipments to Asia. The cost to charter a long-range tanker from India to the UK averaged $4.7 million, or $72 per ton, from June to mid-July, which is double the profit margin for moving Asian goods to Europe. However, recent declines in freight costs could make European shipments more appealing again, raising uncertainty about the sustainability of India’s exports to Asia.
