LSEG data shows that India and Saudi Arabia were the top two buyers of Russian VGO fuel oil and VGO in October.
LSEG data and traders' reports show that India 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 in October decreased by 3% compared to September. This equates to approximately 4.15 million metric tonnes.
As of February 2023 when the European Union's embargo on Russian oil was fully implemented, Asian countries were the primary destination for Russian fuel oil and VGO.
The demand for fuel oil has decreased as the summer heat is over. Direct fuel oil and VGO exports from Russian ports to Saudi Arabia fell by 9% in October, to 0.65 millions tons.
Last month, the Russian ports shipped dark oil products to China in a quantity of 0.47 million tonnes. The Russian fuel oil and VGO supplies to India increased by 56%.
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.
China plans a tax overhaul that could increase costs and slow the demand for imported fuel oil.
The overhaul would put more pressure on China's independent refining companies, also known as "teapots", which typically use fuel oil instead of crude oil for processing.
Tankers carrying around 0.5 millions tons of heavy oil from Russian ports will be 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 to make their way from Singapore to Chinese ports.
Shipping data revealed that in October, Russia sent 220,000 tons (approximately) of fuel oil from Russia to Fujairah in the United Arab Emirates, the third largest bunker port on the planet.
In October, nearly 200,000 tonnes of VGO and fuel oils loaded in Russian port went to ship-to-ship loads near Greek islands. According to market sources, the majority of these cargoes is destined for Asia.
All shipping data are based on date of departure. (Reporting and Editing by Alison Williams).
(source: Reuters)
