In the first two weeks of February, fuel from India to Europe was just $1 per day80,000 barrels, with a surge in cargoes to Asia.
Houthi attacks on merchant ships continue to disrupt the international market**, causing more sellers to prefer to ship goods to Asia. So far this month,Diesel shipments from India to Europe fell to the lowest level since 2022
Fuel flows to the EU and the UK have fallen significantly due to ongoing insecurity in the Red Sea leading to freight rates** and unplanned maintenance at Asian refineries, making it more cost-effective to ship goods east rather than west.
Compiled by Bloomberg as Vortexa LtdThe data shows thatIn the first two weeks of February, fuel shipments from India to Europe averaged just $1 per day80,000 barrels, down more than 90% from the January average。James Noel-Beswick, an analyst at Sparta Commodities, said the drop in traffic was partly due to the cost of shipping to the West last month**.
It is much more economical to export to the east (i.e. the Singapore region) than to the west," said Noel Besik. Threatened by the Houthis, tankers heading to Europe or the Atlantic basin are forced to bypass the Cape of Good Hope in South Africa, which increases the length and cost of the voyage; Oil tankers that continue to use the Suez Canal will need to be "insured against the risk of attack and extremely high risk of war".
The data showed that in the first two weeks of February, the EU did not import diesel-type fuel, and the UK only imported a batch of goods. However, the Marlin Sicily and Marlin La Plata were recently refueled in India and ready to head to Rotterdam, according to tanker tracking data compiled by port reports and compiled by Bloomberg.
Elsewhere, diesel-based fuels from India to Asian destinations, including some to Saudi Arabia and Bangladesh, surged in the first two weeks of the month. More cargo on ships such as the Peace Victoria and the Orange Victoria is heading to East Asia.
Noel Besik said a better carry trade should mean an increase in India's diesel exports to the European region in the coming weeks.