Russia's seaborne exports of fuel oil and vacuum gasoil (VGO) to Saudi Arabia jumped 18 per cent in March from February to one million tonnes as soaring oil prices driven by the Iran war reshaped flows, data from traders and LSEG showed.
Saudi Arabia has emerged as a key export destination, stepping up purchases of discounted Russian fuel oil to supply its power sector, allowing the kingdom to preserve valuable crude that would otherwise be burned for electricity.
Fuel oil and VGO shipments from Russian ports to Saudi Arabia typically rise in summer as air-conditioning demand increases. March's surge was amplified by a tightening crude market and a sharp oil price rally as the Middle East conflict escalated, as well as a temporary waiver on US sanctions on Russian oil products.
Since the European Union's full embargo on Russian oil products took effect in February 2023, Middle Eastern and Asian countries have become the main outlets for Russia's fuel oil and VGO.
Russian exports to Singapore and Malaysia - major bunkering and storage hubs - fell 23 per cent in March from the month before to about one million tonnes, LSEG data showed.
Exports to India, once among Russia's largest fuel oil markets, plunged 66 per cent month on month to just 37,000 tonnes, shipping data showed. Supplies of so-called dirty oil products to India have fallen to near zero since November, after the US imposed sanctions on Russian oil majors Rosneft and Lukoil.
Meanwhile, nearly 230,000 tonnes of VGO and fuel oil loaded in Russian ports in March went for ship-to-ship transfers near Port Said in Egypt, with the final destination still unclear.
Russia's overall seaborne exports of fuel oil and VGO fell about 10 per cent in March from February to 3.35 million tonnes after Ukrainian drone attacks disrupted loadings at key ports.
All the shipping data mentioned is based on the date of cargo departure.
(Reporting by Reuters Editing by Mark Potter)
