Russian fuel exports to Asia via Africa reach record high

Russian exports of petroleum products to Asia via the southern tip of Africa nearly doubled in July from a month earlier, hitting an all-time high, according to LSEG data reported by Reuters.

Last month, Russia’s shipments of fuel via the Cape of Good Hope en route to Asia rose to a record 1.1 million metric tons as more tankers took the longer route instead of the Suez Canal, according to data.

Since late 2023, many ship owners and charterers have opted to use the longer route via the Cape of Good Hope to avoid passage through the Red Sea, where the Iran-aligned Houthis have targeted Western and Israeli-flagged or owned ships.

Despite the fact that Russia is not targeted by the Iran-backed Houthis, the ships do not add another risk by taking the Red Sea route to Asia.

Most of Russia’s exports to Asia via Africa consisted of naphtha, while the rest was fuel oil from Russian ports on the Baltic Sea and low-sulphur diesel from the port of Primorsk, also on the Baltic Sea, according to market sources and data from shipping quotes. by Reuters.

Russia’s markets in Asia were Singapore, Taiwan, India and China, according to LSEG data.

Russia has had higher-than-expected maintenance and repairs at its refineries in recent months after Ukraine stepped up drone attacks on Russian refining capacity earlier this year. In addition to unplanned repairs to repair damage caused by drones, some refineries underwent planned maintenance work that led to a drop in Russia’s fuel production and exports earlier this year.

On Wednesday, the Russian government said Moscow was extending its ban on gasoline exports from October until the end of December 2024 as it tries to keep domestic supply stable amid seasonal demand and scheduled refinery repairs.

By Tsvetana Paraskova for Oilprice.com

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