In February, Russian seaborne fuel oil and vacuum gasoil (VGO) exports continued to find their primary markets in China and India, according to reports from traders and data from London Stock Exchange Group (LSEG). This trend persisted as both countries sought to offset the absence of Russian crude oil by purchasing these fuels.
Following the European Union’s complete embargo on Russian oil products in February 2023, the majority of Russia’s fuel oil and VGO exports shifted towards other regions, particularly Asia. Notably, direct shipments of fuel oil and VGO from Russian ports to India saw an increase, reaching 0.7 million metric tons in February compared to 0.46 million tons in January, based on LSEG data and Reuters calculations.
February witnessed substantial fuel supplies from Russian ports to China (0.7 million tons), Singapore (0.63 million tons), and Malaysia (approximately 120,000 tons). India and China acquire straight-run fuel oil and VGO for refining purposes, partly substituting more costly Urals barrels. As reported by ETEnergyworld.com, overall, Russian seaborne exports of fuel oil and VGO saw a 9% month-on-month increase in February, reaching 3.76 million tons, as per LSEG data.
