Wedoany.com Report on Mar 7th, According to trade sources and ship tracking data, two fuel-laden tankers belonging to India's Reliance Industries have diverted from their original Europe-bound routes to Asia. This adjustment comes against a backdrop of strong refining margins in Asia.

The tanker Advantage Life, which loaded about 100,000 tonnes of diesel at Reliance's Jamnagar refinery on February 28, is now heading towards Singapore. Another vessel, Navig8 Honor, loaded with approximately 75,000 tonnes of jet fuel originally destined for markets west of Suez, has also turned towards Southeast Asia.

Singapore's jet fuel refining margin hit a record high of $80 per barrel on March 5. "Given the tightening supply in the East of Suez market, the arbitrage margin now favors moving jet fuel from India to Asia rather than Europe," said Ivan Mathews, Head of Asia-Pacific Analysis at Vortexa. He added that Asian jet fuel output is expected to decline due to "reduced crude flows into Asia, leading to run cuts and weaker fuel production at refineries in the region."

Informed sources revealed that Reliance Industries is offering spot diesel and jet fuel for late-March loading to Asian buyers this week to capitalize on higher premiums and urgent demand. The premiums under discussion are $15 to $17 per barrel, based on Middle East FOB prices, representing an increase compared to February.

Sources said two other jet fuel tankers, the Elandra Tern and the Burri, have also been diverted from Europe to Asia. Both vessels loaded jet fuel from Oman's Duqm port or Abu Dhabi's Ruwais port on February 28.