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Indian diesel floods to Asia as Houthis imperil flows to Europe

Published19 FEB 24 - 10:35 Reading time  minutes

Arrivals of fuel from India into Europe averaged just 18,000 barrels a day in the first two weeks of February, a plunge of more than 90% compared with January’s average, according to data from Vortexa Ltd., compiled by Bloomberg. The drop partly stemmed from the higher costs of shipping to the west last month, according to James Noel-Beswick, an analyst at Sparta.

Bloomberg, February 19, 2024 – James Noel-Beswick from Sparta noted that the economics of exporting diesel from India favored the Singapore region over Europe due to Houthi-related disruptions in the Red Sea, increasing freight costs and risks. However, he anticipates an increase in diesel exports from India to Europe in the coming weeks as arbitrage economics improve.

 

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