Russian Fuel-Oil Exports To Malaysia, Singapore Hit Record In March

Russia has sent record volumes of seaborne fuel oil and vacuum gasoil (VGO) to Singapore and Malaysia in March, adding to oversupplied Asian markets, traders said and Refinitiv data showed.

• Following the EU’s embargo on Russian oil products on 5 Feb, Russia diverted fuel oil and VGO exports to mostly Asia.
• Fuel oil and VGO shipments from Russian ports to Singapore and Malaysia could exceed 1.1mn tons in March, Refinitiv data show.
• This is despite a recent increase in Asian gasoil stocks as exports to Africa have been replaced by Russian cargoes.
• In total, Russian fuel oil and VGO exports could be at their highest since October, 2022, and reach more than 4.5mn tons, as traders look to get rid of surplus volumes after loading delays in February due to storm weather.
• Some Russian oil products are shipped to Asia via ship-to-ship (STS) loadings, and this month dirty oil product flows from Russian ports to STS loadings near Kalamata port are expected to reach between 0.8-1.0mn tons, Refinitiv figures showed.
• Several tankers loaded in Russian ports also have no final destinations yet, so the real total of fuel oil shipments in March from Russia to Singapore and Malaysia could be much higher than 1mn tons, traders said.