In July, India’s diesel and jet fuel shipments to Singapore and Australia are projected to reach their highest levels in 2.5 years, as sellers shift focus to the Asia Pacific due to weak demand from Europe. Industry sources and shipping data indicate that India is expected to export between 157,000 and 224,000 barrels per day (bpd) of these fuels, marking a 30% increase from June.
The volume of shipments to Australia is anticipated to rise to over 450,000 metric tons, the highest in more than two years. Major exporters like BP and Vitol are facilitating these shipments, particularly as Australian refiners increase spot purchases in response to planned maintenance and a new government mandate to boost refined product stockpiles.
Conversely, India’s middle distillate exports to Europe are expected to hit a six-month low of 142,000 bpd in July, attributed to strong domestic supplies and weaker than anticipated demand in Europe. Rising freight costs on the India-Europe route have also led some traders to redirect their cargoes to Asia.