There were no imports of diesel-type fuel into the EU in the first two weeks of February.
Diesel shipments from India to Europe are at their lowest this month since 2022, as Houthi attacks on merchant shipping continue to disrupt international trade, driving more cargo to Asia.
Increased freight costs due to ongoing turmoil in the Red Sea, as well as unplanned refinery maintenance in Asia, led to a decline in flows to the EU and UK, making trade economics better to ship goods east rather than west. Went.
Fuel arrivals from India to Europe averaged just 18,000 barrels a day in the first two weeks of February, more than 90% less than the January average, according to Vortexa Ltd. data compiled by Bloomberg. The decline was partly due to higher costs of shipping to the West last month, according to Sparta Commodities analyst James Noel-Beswick.
Noel-Beswick said, “The economics of exporting to the East – the Singapore region – were much better than the West.” “Tankers headed to Europe or the Atlantic Basin are being forced to go around South Africa’s Cape of Good Hope, increasing the length and cost of journeys, or use the Suez Canal because of the Houthi threat,” the risk said. And with extremely high war risk insurance.”
According to the data, there were no imports of diesel-type fuel into the EU and only one shipment to Britain in the first two weeks of February. However, the Marlin Sicily and Marlin La Plata recently loaded barrels in India and are headed to Rotterdam, with the former signaling arrival later this month, according to port reports and tanker-tracking data compiled by Bloomberg.
Elsewhere, arrivals of diesel-type fuel from India to Asian destinations – including some cargoes to Saudi Arabia and Bangladesh – rose in the first two weeks of the month. More cargo is headed to East Asia on ships like the Peace Victoria and Orange Victoria.
Noel-Beswick said improved arbitrage economics should mean an increase in diesel exports from India to the European region in the coming weeks.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
