Low volumes herald soft Asia diesel market

Demand issues: Workers at a petrol station in India. If the country continues to switch diesel exports to Asia from Europe, and China does export more as expected, the profit margin on diesel is likely to come under further pressure. — Bloomberg

ASIA’S exports of diesel slumped to a multi-year low in February, and while volumes may recover in March on rising shipments from China and India, it’s likely prices will come under further downward pressure.

A total of 6.6 million tonnes of diesel were exported from Asia in February, down from January’s 8.13 million and the weakest monthly figure for at least two years, according to data compiled by LSEG Oil Research.