India ships jet fuel to US amid California refinery shutdown

India has entered uncharted territory in the global fuel trade, exporting jet fuel for the first time to the United States West Coast.

The move, enabled by a rare market imbalance, comes as production outages in California prompt Chevron to explore alternative supply routes, reported Reuters.

The shipment, originating from Reliance Industries’ massive refinery complex in Jamnagar, marks a strategic response to a temporary opportunity in the aviation fuel market.

While this cargo signals India’s readiness to enter new markets, trade flows remain firmly anchored in Northeast Asia due to freight costs.

But the episode shows how swiftly the global energy map can adjust to regional disruptions, particularly in the tightly balanced jet fuel segment.

Reliance enters new territory

The Panamax tanker Hafnia Kallang departed India’s Jamnagar port between 28 and 29 October, carrying approximately 60,000 metric tons (472,800 barrels) of aviation fuel, said the Reuters report.

Reliance Industries, which operates the refinery, loaded the cargo during a window when jet fuel prices on the US West Coast surged above Asian levels.

Chevron’s 285,000-barrel-per-day El Segundo refinery in southern California, one of the region’s most critical suppliers, has operated at reduced capacity since a fire in October shut several processing units.

The resulting supply gap gave rise to arbitrage, a rare pricing situation where importing fuel from Asia becomes profitable.

The report said the US-bound tanker was chartered by Castleton Commodities.

The shipment is scheduled to reach Los Angeles during the first half of December, just as peak holiday travel season heightens jet fuel demand across North America.

Limited window for Indian exports

Despite the breakthrough, Indian jet fuel cargoes are unlikely to become a common feature on US West Coast routes.

While the arbitrage window was briefly attractive, Northeast Asia, particularly South Korea, remains a more economical source for US imports.

Freight costs for refined fuel from South Korea to California have held near $40 per ton since October, according to SSY pricing data, notes Reuters.

India, by contrast, has higher shipping expenses for long-haul deliveries to the Pacific coast of the United States.

Spot shipping rates for India to the US West Coast routes are not typically published because the route is rarely used.

Kpler’s shiptracking data showed that jet fuel exports from Northeast Asia to the US West Coast rose to five-month highs of about 600,000 tons in October.

This trend highlights that while Indian refiners can react to rare price dislocations, Asia’s traditional exporters still dominate because of geographic advantage.

Tight stocks drive prices higher

Jet fuel inventories on the US West Coast fell to a three-month low of 11.12 million barrels as of 7 November, according to Energy Information Administration data.

Prices have responded accordingly. The premium for US West Coast jet fuel stood at $10 per barrel above Singapore’s free on board spot prices, Asia’s pricing benchmark.

With Chevron’s refinery not expected to resume full operations until repair work is completed, trade sources suggest imports will stay elevated into December.