Russian seaborne fuel oil and vacuum gasoil (VGO) exports sustained their dominance in February, primarily to China and India, as reported by traders and LSEG data. This trend has persisted since the European Union imposed a comprehensive embargo on Russian oil products in February 2023, redirecting the majority of Russia’s fuel oil and VGO to alternative markets, mainly in Asia.
In February 2024, direct shipments of fuel oil and VGO from Russian ports to India surged to 0.7 million metric tons, up from 0.46 million tons in January, according to Reuters calculations based on LSEG data. Similarly, deliveries to China reached 0.7 million tons, while Singapore and Malaysia received 0.63 million tons and approximately 120,000 tons, respectively.
India and China procure these products for refining, partly substituting costlier Urals crude. Nevertheless, a substantial portion of Russian fuel oil and VGO in February underwent ship-to-ship (STS) transfers near Greece’s Kalamata port, amounting to nearly 0.7 million tons, with traders indicating that most of these cargoes ultimately reach Asian destinations.
Meanwhile, exports of dirty oil products from Russian ports to Turkey dipped to around 215,000 tons in February from 340,000 tons in the prior month. Additionally, Russia has notably ramped up its fuel exports to Senegal this year due to heightened bunker demand, as more firms opt for routes around Africa instead of through the Red Sea.
February witnessed fuel oil shipments from Russian ports to Senegal totaling 187,300 tons. Overall, Russian seaborne exports of fuel oil and VGO saw a 9% increase month-on-month in February, reaching 3.76 million tons, as per LSEG data.