Diesel supplies from India to Europe have been at a minimum since 2022 – Kommersant
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Fuel supplies from India to Europe in the first two weeks of February, according to Vortexa, averaged 18 thousand b/d, which is 90% less than January figures, reports Bloomberg. The main reason for the reduction, as the agency writes, was the ongoing Houthi attacks on ships in the Red Sea.
Sparta Commodities analyst James Noel-Beswick told Bloomberg that India chose to export to the East because of lower costs. Due to the escalation in the Red Sea, tankers are forced to bypass the region via the Cape of Good Hope in southern Africa, which increases the duration of deliveries and their cost, or cross the Suez Canal, “taking into account all the risks and extremely high insurance against military attacks.”
According to the agency, in the first two weeks of February, India did not import diesel fuel to the European Union and made only one delivery to the UK. However, the Marlin Sicily and Marlin La Plata vessels were recently loaded with Indian fuel and headed to the Netherlands.
Fuel supplies from India have increased sharply to Saudi Arabia and Bangladesh, Bloomberg reports. Vessels began to sail more often to East Asia.
International Energy Agency (IEA) reported, that in January 2024, global fuel supplies fell sharply by 1.4 million bpd. The decrease occurred, among other things, against the backdrop of a voluntary reduction in oil production by OPEC+ countries.
About the IEA country forecast for oil consumption – in the publication “Kommersant” “India will add to oil demand”.
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