Russia Boosts Seaborne Fuel Oil Exports to India and Turkey in May Amid Falling Prices and Rising Summer Demand

By Admin

21 Jun, 2025

In a significant shift in trade dynamics, Russia ramped up its seaborne exports of fuel oil and vacuum gasoil (VGO) to India and Turkey in May, responding to favorable market conditions and seasonal energy demand. According to trade and shipping data, this surge was driven by declining oil product prices and the increased need for fuel during the hot summer months.

Demand Surges as Prices Dip

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) decision to advance oil production hikes has led to global fears of oversupply, especially in the face of uncertain demand forecasts. Consequently, oil prices dropped to their lowest in four years, making Russian fuel oil increasingly attractive to buyers seeking cost-effective options for power generation and industrial use.

India Doubles Imports of Russian Dirty Oil Products

According to LSEG data, India nearly doubled its seaborne imports of Russian dirty oil products in May compared to April, reaching approximately 0.6 million metric tons. Despite this rise, major Indian refiners showed mixed behavior Reliance Industries cut its intake of Russian oil by 37%, while Nayara Energy’s imports declined by 3% compared to April figures.

Turkey Follows Suit with a 75% Spike

Turkey also significantly increased its intake, with seaborne fuel oil and VGO imports from Russia rising by 75% month-on-month to reach 0.43 million tons in May. This rise highlights Turkey’s growing reliance on discounted Russian fuel oil, particularly during the energy-intensive summer season.

Saudi Arabia Leads but Sees a Dip

Despite remaining the top importer of Russian seaborne fuel oil, Saudi Arabia's imports dropped by 17% from April levels, down to 0.7 million tons. Since 2023, Saudi Arabia has turned to Russian discounted supplies due to falling prices triggered by the EU's embargo on Russian oil products.

Other Key Markets and Changing Routes

Other major recipients of Russian fuel oil and VGO in May included Singapore and China, reinforcing Asia’s role in absorbing diverted Russian oil products.

However, shipments to Asia via the Cape of Good Hope witnessed a downturn, falling to just 85,000 tons the lowest monthly level of 2024. This decline is a result of routing adjustments by traders who are avoiding the Red Sea corridor, a region fraught with increased risks of attacks from Yemen's Iran-backed Houthi group.

Geopolitical Tensions Affect Shipping Patterns

The ongoing military tensions between Iran and Israel have added another layer of complexity, potentially deterring shipowners from using the Red Sea route altogether. These geopolitical developments continue to shape the global oil trade landscape, pushing Russian exports towards alternative and safer maritime paths.