India and China were the top destinations for Russian fuel oil and vacuum gas oil (VGO) exports by sea in May, according to traders and LSEG data.
Russian exports of fuel oil and VGO by sea last month increased by 12% compared to April, reaching around 4 million metric tons, thanks to the completion of seasonal maintenance.
The European Union’s full embargo on Russian petroleum products came into force in February 2023, and the majority of Russian fuel oil and VGO has been redirected to other regions, especially Asia.
In May, direct shipments of fuel oil and VGO from Russian ports to India increased to 0.7 million tonnes from 0.6 million tonnes in the previous month.
Russian fuel oil cargoes to China increased last month to about 520,000 tonnes from 450,000 tonnes in April, according to Reuters calculations and LSEG data.
China and India import high-grade fuel oil and VGO for refining, partly replacing more expensive Ural barrels, traders said.
Supplies of dirty oil products to Saudi Arabia from Russian ports in May doubled month-on-month, reaching 430,000 tonnes. Traders buy fuel oil for power generation during the hot summer season, market sources said.
Cargoes of Russian fuel oil at Egypt’s Ain Sukhna terminal fell last month to 200,000 tonnes, from nearly 500,000 tonnes in April, according to LSEG data.
VGO and fuel oil cargoes from Russia to Malaysia rose to 320,000 tonnes from 190,000 tonnes in April, while dirty oil products in Fujairah fell to 90,000 tonnes from 60,000 tonnes.
Around 450,000 tonnes of VGO and fuel oil loaded at Russian ports in May were destined for ship-to-ship cargoes at Greece and Malta. Most of these cargoes end up in Asia, market sources said.
