India's diesel exports to Europe surge fourfold in June amid better margins
diesel exports to Europe surged fourfold in June over the previous month as refiners profited from better margins available in the continent.
Indian refiners exported 119,400 barrels per day of diesel to Europe in June, up from 24,500 barrels per day in May, according to energy cargo tracker Vortexa. However, India's overall diesel exports fell 4% to 482,400 barrels per day.
Europe alone received a quarter of India's diesel shipments. Supplies to Asia fell 10% to 107,800 barrels per day last month, with nearly 30% cut seen in shipments to other markets including Africa.
«India's diesel exports to Europe rebounded in June on improved arbitrage economics to the West, and weaker margins to Asia,» said Serena Huang, an analyst at Vortexa.
Overall refined products exports fell 5% in June over the previous month to 1.19 million barrels per day. Europe received 17% of Indian supplies while Asia got 27%.
Indian refiners serve both East and the West, mainly offering diesel, petrol and jet fuel. Demand and price arbitrage in different geographies mostly decide the destination for Indian fuel cargoes. Reliance Industries and Rosneft-backed Nayara Energy are the two biggest exporters of diesel.
Indian refiners earned revenues of $29 billion from diesel exports in 2022-23 as prices spiralled after the Ukraine war. As markets calmed, realisations fell to $22 billion in FY24. The Ukraine war forced Europe to cut dependence on Russian diesel supplies. Supplies from the Middle East, the US, and India have replaced much of
