India's diesel exports completely changed in May. Zero shipments to Europe, while a record 83% was supplied to Africa.
Data from the energy cargo tracker company Kpler has revealed this major shift. These figures show how geopolitical tensions are redefining global trade routes.
According to the data, India exported a total of 394,000 barrels per day (bpd) of diesel in May. A large portion of this, about 327,000 bpd, was sent to African countries.
This accounts for about 83 percent of India's total diesel exports. This figure is a huge leap compared to 32% in April and 64% in February.
In contrast, Europe, once a major market for Indian diesel, received zero exports in May. This is a startling figure that demonstrates the impact of European Union policies.
Meanwhile, the demand for Indian diesel in Asian markets also saw a sharp decline of 76%, falling to just 40,000 bpd. The remaining 7% of diesel went to other smaller markets.
Several international factors are at play behind this dramatic shift. Increasing refinery output in Asia, weak demand from China, and ongoing conflict in the Middle East have combined to create this situation.
According to Nikhil Dubey, Lead Analyst for Refining at Kpler, one must look at the situation in both Asia and the Middle East to understand this change.
Refinery output in Asia has been better this month. China's crude oil demand has hit a 10-year low, which has increased crude availability for other Asian refineries.
The ongoing conflict in the Middle East and the blockade of the Strait of Hormuz have initiated a new era of trade optimization.
African countries, which traditionally bought fuel from the Middle East, are now turning to stable suppliers like India due to supply chain disruptions.
The European Union (EU) has imposed strict sanctions on the import of fuel made from Russian crude oil. India, which buys large quantities of discounted Russian crude for its refineries, falls under this rule.
Until the beginning of this year, India was a major supplier of diesel to Europe, but the EU sanctions have effectively closed this route.
Besides diesel, India's petrol exports also saw a sharp decline in May. Petrol exports fell by 40% to 173,000 bpd, compared to 290,000 bpd in April.
There were two main reasons for this decline. First, domestic demand for petrol remained strong in the country due to the summer, leaving less volume for exports.
Second, some production units of major companies like Reliance Industries and Nayara Energy were shut down for maintenance, affecting overall production.
Overall, these figures show how global politics and regional conflicts are reshaping India's energy export strategy, with Africa emerging as a key trading partner.
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