LSEG data and traders' reports on Thursday showed that China and Saudi Arabia were top destinations for Russian seaborne VGO and fuel oil exports.

According to calculations based upon LSEG data, the total fuel oil and VGO exported from Russian ports rose 2% in August to 4.2 million metric tonnes.

As of February 2023 when the European Union fully embargoed Russian oil products, Asian countries have become the primary destination for Russian fuel oil and VGO.

In September, direct fuel oil and VGO supplies from Russian ports rose 1% on a month-on-month basis to 0.8 millions tons. Supplies to India increased by 53% at 0.3 million tonnes.

According to sources, China and India import straight run fuel oil and VGO to replace Urals crude oil as a cheaper alternative in their refinery feedstock pools.

Tankers carrying around 300,000 tonnes of dark oil products are heading to Singapore, but some cargoes may also end up in China.

Singapore is the largest bunkering center in the world, and many tankers use it as a waypoint to reach Chinese ports.

Calculations and LSEG data show that Russian fuel oil and VGO loadings to Saudi Arabia decreased last month by 10% compared to August, to 0.7 millions tons, after the peak summer demand. However, they were still the second highest after shipments to China.

Shipping data revealed that fuel oil and VGO exported to South Korea by Russian Pacific ports fell 1%, to 150,000 tonnes.

In September, nearly 350,000 tons VGO and fuel oils were loaded into Russian ports for ship-to -ship loadings in the vicinity of Greek islands. Market sources claim that the majority of these cargoes is destined for Asia.

All shipping data are based on date of departure. Varun H. K. (Reporting)

(source: Reuters)