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India's Diesel Exports Surge to Europe on Record Margins
8 Oct
Summary
- India's diesel exports reached a one-year peak in September.
- Record profit margins incentivized refiners to boost diesel production.
- Europe received nearly half of India's diesel shipments in September.
India achieved a one-year high in diesel exports during September, with volumes reaching approximately 620,000 barrels per day. This significant increase was primarily fueled by exceptionally high profit margins, with Singapore diesel cracks exceeding $60 a barrel against Dubai crude. Such margins provided a strong incentive for refiners to maximize diesel output and export volumes.
Europe received a substantial portion of these exports, importing around 280,000 barrels per day, a notable increase from the previous month. This surge in Indian exports to Europe is attributed to refinery disruptions in Saudi Arabia and limited availability from Russia, tightening the regional diesel balance. This situation allowed India to step in as a key swing supplier.
Additional diesel volumes were directed to Africa (200,000 bpd), Asia (50,000 bpd), and the Americas (40,000 bpd). Despite a windfall tax on exports, the export-only Jamnagar unit of Reliance Industries, a major exporter, remains unaffected. This strategic positioning and refinery configurations favorable to middle distillate production have bolstered India's role in the global diesel market.
