India has exported jet fuel to the United States West Coast for the first time, taking advantage of a temporary shortage created by refinery shutdowns in California.
A tanker carrying about 60,000 tonnes of aviation turbine fuel left Reliance Industries’ Jamnagar facility at the end of October and is expected to reach Los Angeles in the first half of December. The shipment is understood to be for Chevron, whose El Segundo refinery has been operating below capacity following an October fire.
Why This Matters
Jet fuel production on the US West Coast has been constrained since the shutdown, tightening local inventories. US jet fuel stocks in the region have dropped to a three-month low, while prices are currently trading about USD 10 per barrel above Singapore free-on-board levels.
The supply gap created a rare arbitrage window that made long-haul imports viable despite high freight costs. Most US West Coast imports typically come from Northeast Asia, where shipping economics are more favorable.
Will This Be a Trend?
Analysts expect US imports to remain elevated until refinery repairs are complete, which may take more than a year. However, regular shipments from India are considered unlikely, as freight costs and established Northeast Asian supply chains make the trade unattractive under normal conditions.
Key Takeaways for Clients
● India’s refining ecosystem continues to demonstrate global competitiveness and flexibility
● Temporary supply disruptions can create profitable export windows for Indian refiners
● The trade is opportunistic, not structural. Sustained exports will depend on continued US supply constraints
● Higher Asian jet fuel prices and strong global spreads are supporting refining margins in the short term