India and Saudi Arabia became the largest buyers of fuel oil and gasoil in October
Kyiv • UNN
In October, India and Saudi Arabia became the main importers of Russian fuel oil and gas oil. Total exports amounted to 4.15 million tons, with deliveries to India up 56% and deliveries to Saudi Arabia down 9%.
India and Saudi Arabia were the main destinations for Russian marine exports of fuel oil and vacuum gas oil (VGO) in October. This was reported by Reuters, according to UNN.
Details
It is noted that the total volume of fuel oil and VGO exports from Russian ports last month decreased by 3% compared to September and amounted to about 4.15 million tons, according to Reuters estimates based on LSEG data.
Since the beginning of the full EU embargo on Russian oil products in February 2013, Asia has become the main market for Russian fuel oil and VGO supplies.
Direct deliveries of fuel oil and VGO from Russian ports to Saudi Arabia in October decreased by 9% month-on-month to 0.65 million tons due to lower demand after the end of the summer heat wave.
Russia's exports of fuel oil and VGO to India increased by 56% to 0.51 million tons, while supplies of dark oil products to China decreased by 35% to 0.47 million tons. China and India use straight-run fuel oil and VGO as a cheaper alternative to Urals crude for their refineries.
At the same time, China is planning a tax reform that could increase the cost of fuel oil imports, potentially reducing demand. This will put additional pressure on independent Chinese refineries, which typically use fuel oil as an alternative feedstock for refining.
