India, Egypt leading locations for Russian seaborne fuel oil, VGO exports in April, LSEG information shows
India and Egypt were the top locations for Russian seaborne fuel oil and vacuum gasoil ( VGO) exports in April, traders stated and LSEG information showed.
In overall, Russian fuel oil and VGO seaborne exports fell in April by 10% month-on-month to about 3.32 million heaps, as refining capability idled due to upkeep, technical blackouts and drone attacks, increased last month by 13.6% from March, Reuters estimations revealed.
The European Union's full embargo on Russian oil products entered into effect in February 2023 and the bulk of Russia's fuel oil and VGO was redirected to other areas, mostly Asia.
In April 2024, direct fuel oil and VGO shipments from Russian ports to India increased to 0.6 million metric tons from 0.4 million lots the previous month.
Russian fuel oil loadings to China decreased last month to about 450,000 loads from 660,000 heaps in March, according to LSEG information and Reuters' estimations.
China and India import straight-run fuel oil and VGO for refining, partially changing more pricey Urals barrels, traders said.
Fuel oil products to Egypt increased in April to nearly 0.5 million heaps from 0.1 million tons in the previous month. All the cargoes were discharged at Ain Sukhna Terminal, shipping information revealed.
Traders utilize Ain Sukhna Terminal as storage and mixing facilities, buying fuel oil for power generation ahead of the summer season, market sources said.
A minimum of 200,000 tons of fuel oil had been filled in Russian ports so far in May to supply the Ain Sukhna Terminal, according to LSEG data.
Russian VGO and fuel oil loadings to Fujairah increased in April to about 260,000 lots from 60,000 tons in March.
Fuel oil materials from Russia to Senegal fell last month to about 100,000 heaps from 310,000 lots in March, while loadings to Saudi Arabia decreased to 200,000 loads versus 490,000 tons, shipping data revealed.
About 300,000 lots of VGO and fuel oil packed in Russian ports in April went for ship-to-ship loadings near Greece and Malta. Most of those freights end up in Asia, market sources said.
