China, Saudi Arabia top buyers of Russian fuel oil in September, LSEG data shows
MOSCOW, Oct 17 (Reuters) -China and Saudi Arabia were the top destinations for Russian seaborne fuel oil and vacuum gasoil (VGO) exports in September, traders said and LSEG data showed on Thursday.
Total fuel oil and VGO exports from Russian ports last month rose 2% from August to about 4.2 million metric tons, according to Reuters calculations based on LSEG data.
Since the European Union's full embargo on Russian oil products went into effect in February 2023, Asian countries became the main destination for Russia's fuel oil and VGO supplies.
Direct fuel oil and VGO shipments from Russian ports to China rose 1% month-on-month in September to 0.8 million tons, while supplies to India rose by 53% to 0.3 million tons.
China and India import straight-run fuel oil and VGO as cheaper alternative to Urals crude oil in their refinery feedstock pool, according to market sources.
Tankers with around 300,000 tons of dark oil products from Russian ports are on their way signalling Singapore as destination, but some of those cargoes could end up also in China.
Singapore is the world's largest bunkering hub, and tankers often use it as waypoint on a long route to Chinese ports.
Russian fuel oil and VGO Loadings to Saudi Arabia declined last month by 10% from August to 0.7 million tons after the end of peak summer demand, Reuters calculations and LSEG data showed, but were the second-highest after shipments to China.
Fuel oil and VGO exports to South Korea from Russian Pacific ports decreased by 1% to 150,000 tons, shipping data showed.
Nearly 350,000 tons of VGO and fuel oil loaded in Russian ports in September went for ship-to-ship loadings near Greek islands. Most of those cargoes are destined for Asia, market sources have said.
All the shipping data above are based on the date of cargo departure.
Reporting by Reuters; Editing by Varun H K
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