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Russia fuel oil exports to Middle East, Asia at 14-month high


Combined Russian fuel oil exports to the Middle East and Asia climbed to a 14-month high in April as Russia seeks to establish alternative outlets for its fuel oil exports away from western markets shunning Russian oil exports, according to Vortexa Market Report. April exports to Asia were led by firm exports to Singapore and India that helped offset weaker than anticipated exports to China. Russia may seek to maximize exports to these regions as sanctions gain momentum (e.g. EU plans to ban Russian oil imports, May 15 wind- down orders by EU, UK on certain contracts take effect).

Tight global fuel oil supply and rising Mideast and Asian demand from utilities could also encourage Russian supply to flow east of the Suez.

According to Reuters, Russian fuel oil arrivals in the UAE oil hub of Fujairah are set to jump sharply to about 2.5 million barrels in May, data shows, in a sign that flows of Russian oil and refined products are shifting away from Europe. The arrivals in May are about 125% higher than April levels, and about 24% higher than a recent record in November 2021, the data from oil analytics firm Vortexa showed.

Russian fuel oil exports from the Black Sea ports of Taman and Novorossiysk to Fujairah are fairly common, but Baltic exports are much rarer and those flows have jumped sharply in April and May, the data showed. One trader said Reuters the increased volumes were mainly going into the bunkering pool in Fujairah- the world's third largest bunkering hub after Singapore and Rotterdam.Trading Russian crude and oil products has become more difficult as Western buyers avoid it in response to the Ukraine conflict.Large companies, including Shell, BP and TotalEnergies have already said they have stopped buying cargoes of crude oil and refined products of Russian origin. Major global trading houses are planning to reduce crude and fuel purchases from Russia's state-controlled oil companies as from May 15 to avoid falling foul of European Union sanctions on Russia.

 

Source : PortNews

 

 

 

 

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