Saudi Arabia Remains Top Buyer of Russian Fuel Oil Amid Summer Demand
Saudi Arabia remains the largest importer of Russian seaborne fuel oil and vacuum gasoil (VGO) since the European Union's embargo on Russian oil products took effect in February 2023. In July, Saudi Arabia received 1.1 million tonnes of these fuels, a decrease of 18% from June but still strong due to summer demand for air-conditioning.
The country has been opting for discounted Russian fuel oil for its power sector instead of valuable crude oil that would otherwise be burned for electricity. This decision is likely driven by economic considerations, as the Middle East and Asia have become major outlets for Russia's fuel oil and VGO since the EU embargo.
Meanwhile, Russian fuel exports to Singapore and Malaysia rose 2.5 times in July compared to June, reaching around 0.47 million tonnes. India, which was a significant importer of Russian fuel oil and VGO last year, received no shipments of these fuels in July, though tankers carrying 230,000 tonnes of dark oil products are currently en route to the Suez Canal.