India, China ramp up diesel exports

Asia is bracing for a larger glut of diesel in the coming months, as Indian processing companies like Bharat Petroleum and Hindustan Petroleum are looking to aggressively ship March-loading diesel. These companies have issued a number of tenders in this regard, which adds to a rise in exports by China to a three-year high. Similarly, South Korea is also exporting more and more fuel, as domestic demand conditions remain weak due to poor demand and high crude processing costs.  China also ramped up exports in February to the highest in at least three years, while South Korea is sending more fuel abroad as well. These countries have lifted shipments after their domestic supplies swelled amid sluggish demand and robust crude processing rates.

China’s diesel exports reached a daily average of 550,000 barrels in February, growing by 22% YoY, while India’s shipments rose by 15% YoY at 527,000 barrels a day, according to Vortexa. South Korea’s exports of industrial fuel and light-cycle oil (which can be blended into diesel) increased to the highest level since September in the previous month.