Saudi Arabia Dominates Russian Fuel Oil Imports Amid Summer Demand

Saudi Arabia has continued to be the top destination for Russian seaborne fuel oil and vacuum gasoil (VGO) in July, despite a 12% drop in total export shipments. According to LSEG data, Saudi Arabia received 1.1 million tonnes of fuel oil and VGO from Russia in July, down from 1.3 million tonnes in June.

This is not surprising, given the strong summer demand for air-conditioning in Saudi Arabia. The country has been purchasing discounted Russian fuel oil for its power sector instead of burning valuable crude oil for electricity. Since the European Union's full embargo on Russian oil products took effect in February 2023, the Middle East and Asia have become the main outlets for Russia's fuel oil and VGO.

Russian fuel exports to Singapore and Malaysia also rose significantly in July, up 2.5 times month-on-month to around 0.47 million tonnes. However, exports of dark oil products from Russian ports to Turkey dropped by 21% in July compared to the previous month.