LSEG data and traders' reports show that India and China were top destinations of Russian seaborne fuel oils and vacuum gasoils (VGO) in May.

The completion of seasonal maintenance helped to boost the exports of Russian fuel oil and VGO by 12% in comparison with April, which reached about 4 millions metric tons.

The full European Union embargo against Russian oil products came into force in February 2023. Most of the fuel oil and VGO produced by Russia was diverted to other regions - mainly Asia.

The direct fuel oil and VGO exports from Russian ports to India in May increased from 0.6 to 0.7 millions tons.

Calculations and LSEG data indicate that the Russian fuel oil exports to China increased last month from April's 450,000 tonnes to 520,000 tonnes.

Traders said that China and India import straight run fuel oil and VGO to be refined, partly replacing the more expensive Urals barrels.

In May, the dirty oil products supplied to Saudi Arabia by Russian ports doubled from month to month. They reached 430,000 tonnes. Market sources claim that traders buy fuel oil to generate electricity during the hot summer months.

LSEG data show that the Russian fuel oil loads to Ain Sukhna Terminal, Egypt, fell to 200,000 tonnes last month from almost 500,000 in April.

VGO and fuel oils loadings to Malaysia increased to 320,000 tonnes from 190,000. While dirty oil products to Fujairah decreased to 90,000 from 60,000.

In May, about 450,000 tonnes of VGO and fuel oils loaded in Russian ports were shipped to ship-to-ship loadings in Greece and Malta. Market sources claim that the majority of these cargoes are bound for Asia. David Goodman (Reporting and Editing)