Fuel tankers reroute to Asia amid Iran conflict and high margins

Two tankers carrying diesel and jet fuel from Reliance Industries Ltd in India have changed course from Europe to Asia, according to trade sources and shiptracking data. The move reflects rising Asian fuel demand and tightening supply caused by the ongoing conflict in Iran.

The Advantage Life, loaded with about 100,000 metric tons (745,000 barrels) of diesel at Reliance’s Jamnagar refinery on February 28, is now heading to Singapore instead of Europe. Similarly, the Navig8 Honor, carrying roughly 75,000 tons (591,000 barrels) of jet fuel originally bound for West-of-Suez markets, is rerouted to Southeast Asia, News.Az reports, citing Reuters.

Asian buyers are scrambling to secure fuel as refinery run cuts and Strait of Hormuz disruptions tighten supply. Singapore’s jet fuel refining margins hit a record $80 per barrel on March 5, making Asia a more profitable market for Indian refiners.

Analysts note that “arbitrage margins favor sending fuel from India to Asia rather than Europe” due to the current supply squeeze. Reliance has been offering spot diesel and jet fuel to select Asian buyers at premiums of $15–17 per barrel, compared with smaller premiums in February.

The U.S. Treasury is expected to announce measures addressing rising energy prices amid the Iran conflict. Meanwhile, two other jet fuel tankers, the Elandra Tern and Burri, also rerouted from Europe to Asia, highlighting the regional scramble for fuel supplies.

News.Az 

By Aysel Mammadzada