Finance
Ships loaded with reliance diesel, jet fuel turn to asia instead of Europe
Published by Global Banking & Finance Review®
Posted on March 6, 2026
3 min readLast updated: March 6, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 6, 2026
3 min readLast updated: March 6, 2026
Two Reliance-loaded fuel tankers bound for Europe have diverted to Asia as soaring jet fuel margins in Asia—driven by Strait of Hormuz disruptions—make east-of-Suez deliveries more profitable. A US 30‑day waiver allows India to buy Russian oil stranded at sea, easing supply stress.
By Trixie Yap
SINGAPORE, March 6 (Reuters) - Two tankers loaded with fuel from Reliance Industries in India that were headed to Europe made u-turns and are now bound for Asia, according to two trade sources and shiptracking data, as the refiner capitalises on firm Asian margins with the Iran war squeezing supply.
The Advantage Life, which loaded around 100,000 metric tons (745,000 barrels) of diesel at Reliance's Jamnagar refinery on February 28, is currently bound for Singapore, according to Kpler, LSEG data and two trade sources.
The Navig8 Honor, which is carrying around 75,000 tons (591,000 barrels) of jet fuel and was initially headed to West-of-Suez markets, also turned around and is heading for Southeast Asia, according to Kpler shiptracking data and one of the two sources.
Reliance did not immediately respond to a Reuters request for comment.
Asian buyers are rushing to secure fuel supplies to offset production losses from expected refinery run cuts as the near-halt in traffic in the Strait of Hormuz constrains oil supply to the region.
Singapore jet fuel refining margins hit a record on March 5 of $80 a barrel.
Arbitrage margins favour sending jet fuel barrels from India to Asia rather than Europe now, given the tightening supply in East-of-Suez markets, according to Vortexa's head of APAC analysis Ivan Mathews.
Asia's jet fuel production is expected to drop on "lower crude flows to Asia, prompting refinery run cuts and weaker fuel output in the region," while "restrictions in Strait of Hormuz flows will reduce Middle East Gulf exports" and further tighten availability, he added.
Reliance has this week been offering spot diesel and jet fuel loading from end-March to a handful of buyers in Asia, cashing in on the higher premiums and urgent demand, four other sources with knowledge of the activities said.
Discussions were at premiums of $15 to $17 per barrel, linked to Middle East prices on a free-on-board basis, two of the four sources said, compared with small premiums in February.
Indian refiners are buying prompt Russian crude oil cargoes as the South Asian nation seeks to navigate an oil supply crunch, with the U.S. Treasury Department granting a 30-day waiver on Thursday allowing India to buy Russian oil stuck at sea.
OTHER TANKERS ALSO U-TURN
Two other jet fuel tankers, the Elandra Tern and the Burri, also turned towards Asia from their original destination of Europe, the sources said.
The two vessels had loaded jet fuel from either Duqm port in Oman or Ruwais in Abu Dhabi before the war in Iran started on February 28, according to Kpler data and two trade sources.
(Reporting by Trixie Yap; Additional reporting by Mohi Narayan; Editing by Thomas Derpinghaus)
Reliance rerouted the tankers to Asia to take advantage of stronger refining margins and a supply squeeze caused by the near-halt of traffic in the Strait of Hormuz.
The conflict has constrained oil supply through the Strait of Hormuz, leading to higher prices and tighter markets, particularly impacting Asian refiners.
The tankers Advantage Life and Navig8 Honor, both loaded with diesel and jet fuel, changed course to Asia; Elandra Tern and Burri also diverted from Europe to Asia.
Asian jet fuel refining margins hit record highs, with premiums offered for spot cargoes rising to $15-17 per barrel amid urgent demand and supply constraints.
Indian refiners are securing prompt Russian crude oil cargoes, aided by a U.S. waiver to help navigate supply disruptions.
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