SINGAPORE: Saudi Arabia imported record volumes of discounted Russian fuel oil in June, a near 10-fold annual increase to meet summer power generation demand and maintain crude exports despite OPEC+ production cuts, according to traders, analysts and Kpler data.
For Russia, its growing oil trade with the world’s biggest exporter enables it to keep output flowing to global buyers despite Western sanctions that have shut its access to key markets including Europe.
Saudi Arabia imported a record 910,000 metric tons (193,000 barrels per day) of fuel oil from Russia in June, data from analytics firm Kpler showed.
The kingdom has ramped up fuel oil imports from Russia this year following the European Union’s ban on Russian products.
Saudi’s Russian fuel oil imports hit 2.86 million metric tons for the first half of 2023, exceeding the 1.63 million metric tons for all of 2022, the data showed.
The predominantly high-sulphur fuel oil (HSFO) cargoes from Russia mostly end up at Saudi oil-fired power plants, said Royston Huan, fuel oil and feedstocks analyst at consultancy Energy Aspects.
Saudi Arabia said this month it would extend an extra 1 million barrels per day output cut for a second month in August to support prices as part of a pact between the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+.
