Saudi Arabia and India were biggest buyers of Russian fuel oil in July, data shows

Saudi Arabia and India were the top destinations for Russian seaborne fuel oil and vacuum gasoil (VGO) exports in July, traders said and LSEG data shows.

Since the European Union’s full embargo on Russian oil products took effect in February 2023, Middle Eastern and Asian countries have become the main destinations for Russia’s fuel oil and VGO supplies.

Direct fuel oil and VGO shipments from Russian ports to Saudi Arabia totalled about 1.1 million metric tons in July, little changed from June, shipping data showed.

Most of the cargoes were destined for power plants because Middle Eastern countries typically burn crude and high-sulphur fuel oil (HSFO) for energy generation between June and August, when air conditioning demand spikes.

Russian dark oil products loadings to India rose last month by 65% from June to about 0.6 million tons, LSEG data shows.

India imports straight-run fuel oil and VGO from Russia as a cheaper alternative to Urals crude oil in its refinery feedstock pool.

Though Russia continues to be the biggest oil supplier to India, oil imports declined in July by a quarter month on month as some refiners slowed purchases owing to smaller discounts.

Singapore, Turkey and Senegal were also among the top destinations for Russian fuel oil and VGO export supplies last month, LSEG data showed.

All the shipping data above is based on the date of cargo departure.