AsianOil: Indian diesel exports to Europe hit all-time high in September

India’s loading of diesel exports bound for Europe hit an all-time high in September, Reuters reported this week, citing sources as saying that it was the result of traders looking to cash in on arbitrage profits to the West. Those same trader and analyst sources warned that the volume level was unlikely to be sustained into October, however.

“This trade flow was mainly attributed to the opened arbitrage for India-origin cargoes to heat West, with traders potentially preparing for the loss of Russian diesel barrels to Turkey as well due to the export ban,” the head of APAC analysis at Vortexa, Serena Huang, told the news agency.

Russia banned diesel exports on September 21 following months of soaring domestic prices, although the measure was partially lifted on October 6. High exports were also supported by a seasonal drop in India’s domestic demand, according to an Indian trading source.

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