Russia’s seaborne exports of fuel oil and vacuum gasoil (VGO) declined by around 6% month-on-month (MoM) in May to 3.2 million metric tons, as Ukrainian drone strikes on energy infrastructure disrupted production and shipments, according to data from traders and London Stock Exchange Group (LSEG) cited by Reuters.
Saudi Arabia remained a key destination for Russian fuel oil and VGO, supported by rising air-conditioning demand during the summer season. However, shipments to the Kingdom fell by 17% compared to April, reaching 1.23 million tons (mmt), based on Reuters calculations.
Traders noted that higher export volumes in recent months were driven by disruptions linked to the Iran war, which reshaped global trade flows and increased demand for crude oil, alongside a temporary waiver on U.S. sanctions on Russian oil products.
Analysts expect Saudi Arabia to increase its use of imported fuel oil for power generation this summer, amid reduced natural gas supply from oilfields shut following the Iran-related disruptions to its oil exports.
Since the European Union’s (EU) full embargo on Russian oil products came into effect in February 2023, Russia has redirected most of its fuel oil and VGO exports toward markets in the Middle East and Asia.
In Asia, exports to key storage and bunkering hubs, including Singapore and Malaysia, dropped by 39% MoM in May to around 0.4 mmt, according to LSEG data.
Meanwhile, approximately 140,000 tons of fuel oil and VGO loaded from Russian ports in May were destined for ship-to-ship transfers near Port Said, Egypt, with final destinations remaining unclear.
Exports to India, previously one of Russia’s largest fuel oil markets, also declined by 28% to about 120,000 tons during the same period, shipping data showed.
