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Russia Exports Record VGO and Fuel Oil to India

OIL PRODUCTS

Russia has exported record volumes of fuel oil and vacuum gas oil (VGO) to India in September, as these feedstocks replace crude arrivals, according to Reuters.

  • September exports of fuel oil and VGO totaled 1.4m mt, double the 0.7m mt in August. Most of these exports are likely to be delivered in October.
  • India’s purchasing of VGO, and fuel oil can replace Urals crude barrels, which have seen rising prices amid a tightening market.
  • For October loadings, Urals crude loadings at Russian ports headed DES India had been trading at around a $6-$7/b discount to Brent, according to Reuters.

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