India's diesel exports to Europe increased 42% year on year in December, owing to high winter demand and a lack of Russian supplies on the continent. According to energy cargo tracker Vortexa, India exported 248,000 barrels per day (bpd) of diesel to Europe in December, up from 175,000 bpd in December 2022 and 247,000 bpd in November.
In December, India's total exports increased 17% year on year to 637,000 bpd. Europe accounted for 39% of India's diesel exports in December, up from 32% in December '22 and 37% in November. In December, India did not export any diesel to the United States. The United States contributed 14% of India's total diesel exports in December 22 and 4% in November.
India's diesel export growth "is a result of strong refinery runs and softer domestic demand," said Serena Huang, analyst at Vortexa. In November, diesel exports grew 43% year-on-year to 669,000 bpd. Indian refineries ran above their nameplate capacity of 5 million barrels per day (mbd) in November, processing 5.17 mbd of crude. Domestic diesel demand fell 3% year-on-year in November, leaving refiners with a surplus to export.
Domestic diesel consumption fell 2.5% year on year in December, but was only about 1% higher than in November. After imposing sanctions on the import of diesel from its traditional supplier, Russia, Europe has become a major consumer of Indian diesel. Following the outbreak of the Ukraine war, which prompted western nations to shun Russian refined products, India's diesel exports shifted significantly to the West from other markets.
