Europe binges on Indian diesel as supplies from US, Saudi dip
While it’s not possible to say with certainty that the molecules originated in Russia — India also processes oil from elsewhere — Moscow’s deliveries have given Indian refineries an ability to produce abundant diesel and boost exports.
Arrivals into Europe in November include a rare shipment from Mumbai-based Nayara Energy Ltd., which imported almost 60% of its crude from Russia this year, according to Kpler. Reliance Industries Ltd., Europe’s top supplier of Indian diesel, draws more than third of its crude from Russia, the figures show.
The surge in diesel imports from India also illustrates a fundamental shift in oil trading in the wake of the Kremlin’s war in Ukraine. A year ago, Russia was Europe’s top supplier of diesel, a fuel vital to the industrial and transport sectors. The European Union banned most seaborne imports of Russian crude in December and oil products in February.
In response, Europe and the UK have sought diesel supplies from other markets. India is helping to fill a supply gap as European imports from the US, Turkey and Saudi Arabia slip in November. Arrivals of Saudi diesel are set to drop to about 94,000 barrels a day, the lowest since February 2020.
The “availability of Saudi barrels has fallen sharply in October and November due to planned local refinery maintenance, boosting interest for Indian diesel,” said Eugene Lindell, head of refined products at industry consultant Facts Global Energy.
Competitive Edge
As the West shuns Russian oil, Moscow has found increased appetite for its crude in Asia. Indian refiners have been able to purchase Russian crude at a discount and sell the processed oil in markets, like Europe, where diesel is in high demand.
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