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India's July diesel, jet fuel exports to Singapore, Australia set to strike 2-1/2- year high

India's diesel and jet fuel deliveries to Singapore and Australia are set to hit the highest levels in 21/2 years in July as sellers looked east with demand lukewarm from Europe, according to market sources and delivering information.

The dive in middle extracts exports from swing supplier India to the Asia Pacific will likely cap prices and refiners' margins in the area, while preventing an additional build-up in stocks in Europe which have actually been weighing on prices there, the sources stated.

India, one of Asia's leading fuel exporters, is anticipated to ship in between 157,000 bpd and 224,000 bpd of diesel and jet fuel to Singapore and Australia in July, approximates from LSEG, Vortexa, Kpler and two trade sources revealed, the greatest because end-2021 and early 2022. This would have to do with 30% greater than June.

The volume to Australia is anticipated to surge to a more than two-year high of 450,000 metric tons, LSEG Oil Research study stated in a note. BP and Vitol shipped most of the volumes to Australia where they have fuel distribution businesses, while Shell shipped cargoes to Singapore, Kpler and LSEG data showed.

Planned refinery maintenance in Australia triggered some regional refiners to purchase more spot freights than normal, among the sources included.

Likewise, the rise in Australia's imports comes after a. government mandate to increase refined items stockpiles that. took effect from July, 2 Asian refinery sources stated.

Meanwhile, India's middle extracts exports to Europe are. likely at a six-month low of 142,000 bpd in July, LSEG data. showed.

Europe's imports from Asia have just recently been reduced by. robust domestic materials and slower than expected domestic. need, some experts state.

Some traders diverted their freights to Asia after freight. rates on the India-Europe route increased, one Singapore-based trade. source stated.

The cost of chartering a long-range (LR) tanker from India. to the U.K. to carry 65,000 tons of diesel or jet fuel balanced. at $4.7 million, or $72 per heap, from June to mid-July, SSY. Tanker data revealed. The shipping cost is double what a trader. could make from moving Asian items to Europe.

However, a number of traders said it was unclear if India's. exports to Singapore and Australia would be sustainable as the. arbitrage economics for deliveries to Europe has been improving. after freight rates on this trade path dipped recently.

Shipping expenses on the India-UK route slipped back to. five-month low of $3.7 million - $57 per heap - on July 26, SSY. Tankers data revealed.

This momentum could slow in the next few months as numerous. Indian refiners are participating in prepared upkeep this. quarter, which would see lower refinery supplies, stated. Vortexa's head of APAC analysis Serena Huang, describing India. volumes bound for Asia.

(source: Reuters)