India's May diesel exports to Southeast Asia seen at multi-year highs on higher margins

India's diesel exports to Southeast Asia for May are expected to be the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia and as higher freight costs deterred shipments to Europe, reports Reuters.

Increased diesel exports from India, one of the largest suppliers in the region, is cooling spot premiums for the fuel in Asia and pressuring derivatives markets, while tightening the fuel's availability in Europe and supporting prices there.

Shipments on the India-Southeast Asia route climbed to 600,000 metric tons (4.47 million barrels) or more this month, shiptracking data from LSEG, Kpler, Vortexa and two trade sources showed.

Such levels were last seen at the end of 2021, Kpler data showed. Most volumes were destined for Singapore or Malaysia, the data showed.

Volumes on the India-southeast Asia route hit a multi-year high in May, with sellers choosing east of Suez markets as a preferred destination due to stronger margins and cheaper freight costs.