India’s diesel exports to Europe reached a record high in September, driven by arbitrage profits and a seasonal decline in domestic demand. The surge in exports will help Europe build commercial stockpiles ahead of the winter heating season and limit price gains. However, experts predict that export volumes are unlikely to continue at the same level in October. The east-west arbitrage spread has narrowed in recent weeks, and ongoing refinery turnarounds and peak Diwali festive season demand are expected to impact export volumes.