Saudi Arabia was top buyer of Russian fuel oil and VGO in November

MOSCOW: Saudi Arabia was the top destination for Russian sea-borne fuel oil and vacuum gasoil (VGO) exports in November, according to traders and LSEG data.

Total fuel oil and VGO exports from Russian ports last month rose by 6% from October to about 4.26 million metric tons, according to Reuters calculations based on LSEG data.

Since the European Union’s full embargo on Russian oil products went into effect in February 2023, Asian countries became the main destination for Russia’s fuel oil and VGO supplies.

Direct fuel oil and VGO shipments from Russian ports to Saudi Arabia increased in November by 29% month-on-month to 0.85 million tons.

Russian fuel oil and VGO loadings to India declined last month by 5% to around 0.47 million tons, while dark oil products supplies from Russian ports to China decreased by 25% to 0.32 million tons.

Fuel oil supplies to China are falling on an expected tax revamp, which would raise costs for imported oil products, according to market sources.

China and India import straight-run fuel oil and VGO for refining feedstock pool as cheaper alternative to Urals crude.

Tankers with around 0.6 million tons of dark oil products from Russian ports are on their way signalling Singapore as destination, but some of those cargoes could end up also in China.

Singapore is the world’s largest bunkering hub, and tankers often use it as way point on a long route to Chinese ports, especially cargoes moving via cape of Good Hope instead of Suez Canal. All the shipping data above are based on the date of cargo departure.