Russia has increased its shipments of fuel oil and vacuum gasoil (VGO) to Asia and the Middle East, with Saudi Arabia and India standing out as the largest buyers in July.
Data from LSEG and traders show that Russian fuel oil and VGO exports to Saudi Arabia reached about 1.1 million metric tons in July, nearly the same as in June. Most of these cargoes were directed to Saudi power plants, where demand for high-sulphur fuel oil rises during the summer months when energy consumption spikes due to air conditioning use.
India also boosted its purchases, importing around 0.6 million tons of Russian fuel oil and VGO in July, which marked a 65% increase from June. Indian refiners use these products as a cheaper alternative to Urals crude in their refining operations. However, despite this rise, Russia’s overall oil exports to India declined by 25% last month as some refiners cut back purchases due to shrinking discounts.
Other key destinations for Russian dark oil products in July included Singapore, Turkey, and Senegal, according to LSEG data.
Since the European Union banned Russian oil products in February 2023, Moscow has redirected much of its fuel exports to Asian and Middle Eastern markets. This shift has strengthened energy trade between Russia and these regions, particularly during periods of peak demand.
