India's exports of low-sulphur diesel to Europe are poised to hit a two-year low as Red Sea security risks drive up freight costs.
Citing trade and analyst sources, Reuters reported volumes so far declining by roughly 80% month-on-month to 33,400-58,000 barrels per day (bpd), according to shiptracking data from Kpler, LSEG and Vortexa.
Persistently high freight costs would be likely to prompt sellers of India-origin cargoes to look to Asia for buyers soon, which would tighten supplies into Europe further, sources said.
Planned maintenance and European refining plant could add to the squeeze on supply. Shell's Pernis refinery in the Netherlands has begun maintenance that will take half its 400,000 bpd capacity offline until mid-April. ExxonMobil is also shutting its 191,000 bpd Rotterdam refinery for maintenance from mid-February to late April, according to the report.