Russia has sent ultra-low sulphur diesel from its ports for storage in the regional hub of Singapore and in West Africa, traders and shipping data show, as ample supply has slowed demand.
Since the full EU embargo on importing Russian oil products took effect in February 2023, Russia has diverted its diesel exports from Europe to Brazil, Turkey, and various parts of Africa and Asia.
According to shipping data from Vortexa and Kpler, the Aether loaded about 100,000 metric tons of diesel in May in the Russian Baltic port of Primorsk and reached Singapore last week, where it is discharging at the Universal terminal.
Two other vessels – the Advantage Portofino and the Minerva Aries – were loaded in June in the Baltic ports of Primorsk and Saint Petersburg with 167,000-169,000 tons of diesel in total. They are heading to Singapore or Malaysia.
The Advantage Portofino chose the long route around Africa instead of the Suez Canal, LSEG data shows.
Another vessel – the Advantage Life loaded about 93,000 tons of diesel in Primorsk in July, and is also bound for Singapore, the data showed.
Singapore is the oil products storage hub for southeast Asia and the volumes from Russia would probably be distributed throughout the region following a lack of demand in some markets west of Suez, traders said.
Reuters spoke to five traders, who spoke on condition of anonymity.
They cited lower demand in Turkey, after its purchases of Urals crude increased to a record in May.
A lack of demand in west of Suez markets probably also encouraged the flow from Russia to Asia, one Singapore-based source said.
Russia increased diesel supplies to Togo in West Africa to about 270,000 tons in June from 40,000 tons in May.
About 66,000 tons have already been loaded onto the VLCC the Monaco Loyalty, which is being used for regional storage off Togo, LSEG data shows.
Demand for the stored diesel could increase in August when Indian refineries begin their maintenance season.
Togo typically imports from India 140,000-300,000 tons of ultra-low sulphur diesel per month, LSEG shows.