Russia's exports of marine fuel oil and VGO products fell by 10% to 3.32 million tons due to maintenance, disruptions, and a 13.6% increase in drone attacks. Traders point out that in April, India and Egypt became the main export destinations for Russian marine fuel oil and vacuum gas oil (VGO).
Written by UNN with reference to Reuters.
After the European Union imposed a full embargo on Russian petroleum products in February 2023, the main volumes of Russian fuel oil and VGO were redirected to other regions, mainly to Asia. In April 2024, the volume of direct deliveries of these products from Russian ports to India increased to 0.6 million metric tons from 0.4 million tons a month earlier.
According to LSEG and Reuters calculations, fuel oil exports to China fell to about 450,000 tons from 660,000 tons in March. Traders say China and India are using imported straight-run fuel oil and VGO for refining, replacing more expensive crudes such as Urals.
In April, the volume of fuel oil supplies to Egypt increased significantly, reaching almost 0.5 million tons, compared to 0.1 million tons in the previous month. All cargoes were delivered to the Ain Sukhna terminal, according to transportation data.
According to market analysts, traders are using the Ain Sukhna terminal to store and blend fuel oil purchased for power generation ahead of the summer season.
According to LSEG, at least 200,000 tons of fuel oil destined for the Ain Sukhna terminal were shipped from Russian ports in May.
In April, the volume of Russian VGO and fuel oil shipments to Fujairah increased to about 260,000 tons, compared to 60,000 tons in March. At the same time, Russia's fuel oil exports to Senegal dropped to about 100,000 tons from 310,000 tons in March, and shipments to Saudi Arabia fell to 200,000 tons from 490,000 tons, according to the delivery data.
Recall
EU member states are engaged in difficult negotiations on a new package of sanctions against Russia and Belarus, with disputes arising over the possible inclusion of Russian liquefied natural gas exports in the sanctions.