India's diesel exports reached a 12-month high in September 2024, according to traders. The increase comes as global refining capacity was reduced by 8 million barrels per day due to conflicts in the West and drone attacks on Russian facilities. This disruption led to a tightening of supply in key markets, boosting India's competitive position.
The drop in global refining capacity has created a shortage of refined products, prompting buyers to seek alternatives. India, with its surplus production, has benefited from this situation. Exports to the Middle East and Southeast Asia saw significant growth, with some shipments exceeding previous annual averages.
This trend follows a pattern of increased exports in recent months, driven by lower domestic demand and higher international prices. The government has not imposed new restrictions, allowing refiners to focus on export markets. Analysts note that the situation could continue if geopolitical tensions persist, affecting global supply chains.
The rise in exports reflects broader shifts in energy markets, with India positioning itself as a key supplier in a volatile environment. As refining capacities remain under pressure, the country's role in global energy trade is likely to grow.
