According to LSEG data, in June, Saudi Arabia became the largest buyer of Russia‘s seaborne fuel oil and vacuum kerosene (VGO) exports. The increased energy consumption needs of the hot summer season contributed to this rise in demand.
Following the European Union’s full embargo on Russian petroleum products coming into effect in February 2023, Middle Eastern and Asian countries have become the main buyers of Russian fuel oil and VGO products.
In June, direct shipments of fuel oil and VGO from Russian ports to Saudi Arabia increased by 9% compared to the previous month, reaching 0.8 million metric tons. On the other hand, shipments of Russian dark oil products to India and Türkiye decreased by 49% and 33% respectively, following abundant supply in previous months. In June, 0.34 million tons were shipped to India and 0.28 million tons were shipped to Türkiye.Additionally, in June, approximately 400,000 tons of fuel oil and VGO were shipped to the Ain Sukhna terminal in Egypt. This terminal is frequently used to store petroleum products and facilitate further exports.
Singapore, Senegal and China were also among the largest buyers of Russian fuel oil and VGO products.
According to LSEG data, only two ships sailing from Africa’s Cape of Good Hope to Asia are carrying 180,000 tons of fuel oil. Finally, traders are redirecting Russian oil products around Africa from December 2023 onwards due to the risk of attacks by Yemen’s Iranian-backed Houthi group.
