Saudi Arabia remained top buyer of Russian fuel oil in July

RIYADH, Saudi Arabia — Saudi Arabia held its position as the largest single destination for fuel oil and vacuum gasoil shipments from Russian ports in July, driven by rising air-conditioning demand, according to data from the London Stock Exchange Group and market trackers reported by Reuters. The kingdom imported 1.1 million tons of the products, an 18 percent decline from June, but enough to keep it ahead of other buyers. Saudi utilities have continued to burn Russian fuel oil for power generation rather than higher-value crude, the data showed. Since the European Union's full ban on Russian refined petroleum products took effect in February 2023, buyers in the Middle East and Asia have become the main outlets for Russian fuel oil and vacuum gasoil. Shipments to Singapore and Malaysia, which serve as marine bunkering and storage hubs, rose roughly 2.5 times month on month to 470,000 tons. By contrast, India, which received 150,000 tons of Russian fuel oil in June, recorded no Russian fuel oil or vacuum gasoil deliveries in July.