According to shiptracking and two trade sources, two tankers with fuel loaded from Reliance Industries, India, that were heading?to Europe have now made a u-turn and are bound for Asia. The refiner is taking advantage of the firm margins in Asia as the Iran War is squeezing the supply.

According to Kpler data, LSEG and two sources of trade, the Advantage Life is currently en route to Singapore after loading?around 100,000 metric tonnes (745,000 barrels?) of diesel at Reliance Jamnagar's refinery on 28 February.

According to Kpler data and one of two sources, the Navig8 honor, which was originally headed for West-of Suez markets and carrying 75,000 tons of jet fuel, has also turned around and headed to Southeast Asia.

Reliance didn't immediately respond to an?request for comments.

As the Strait of Hormuz traffic is at a near standstill, Asian buyers are scrambling to secure fuel supplies in order to offset expected production losses.

Singapore jet fuel refinery margins reached a record of $80 per barrel on 5 March.

Ivan Mathews, Vortexa's Head of APAC Analysis, says that arbitrage margins favor sending jet fuel barrels to Asia, rather than Europe, now, due to the tightening supply on East-of-Suez markets.

The drop in Asia's jet-fuel production is due to "lower crude flow to Asia" which will lead to refinery shutdowns and a weaker fuel supply in the region. "Restrictions on Strait of Hormuz exports to Middle East Gulf" will further reduce availability.

Four other sources familiar with the activity said that Reliance offered spot diesel and jet-fuel loadings from the end of March to a few buyers in Asia. The company was taking advantage of the high premiums and the urgent demand.

Two?of four sources? said that the discussion was at 'premiums between $15 and $17 per barrel linked to Middle East Prices on a Free-on-Board basis. This is compared to small premiums back in February.

Indian refiners have purchased Russian crude oil cargoes in order to meet the South Asian nation's?oil supply crisis. The U.S. Treasury Department granted a waiver of 30 days on Thursday, allowing India to purchase Russian oil that is stuck at sea.

Other TANKERS also U-Turn

Sources said that two other jet fuel tanks, the Elandra Tern, and the Burri also?turned toward Asia from their initial?destination to Europe.

According to Kpler data, and two trade sources, the two vessels had loaded jet fuel either from Duqm Port in Oman or Ruwais port in Abu Dhabi prior to the start of war in Iran on February 28.

(source: Reuters)