Saudi Arabia Leads in Russian Seaborne Fuel Oil Imports

In November, Saudi Arabia emerged as the leading importer of Russian seaborne fuel oil and vacuum gasoil (VGO), as revealed by LSEG data. Russian exports of these products increased by 6% month-on-month, reaching about 4.26 million metric tons. This surge highlights the growing trend of Asian countries becoming the primary buyers of Russian oil products, especially since the European Union imposed an embargo on Russian oil in February 2023.

Meanwhile, India, previously the largest buyer of Russian crude, saw a significant drop in imports, down 55% in November. This marks the lowest import figure since June 2022, despite Russia continuing to offer its oil at a discount. India’s efforts to diversify its energy sources are evident, with Indian Prime Minister Narendra Modi emphasizing the importance of Guyana as a key energy partner during his visit to the South American country. While discussions continue, the potential for significant oil supplies from Guyana remains on the horizon.

Key Trends in Global Energy Markets

This shift in energy sourcing comes as global energy dynamics continue to evolve, particularly following Russia’s invasion of Ukraine in 2022. The importance of Liquefied Natural Gas (LNG) has surged, with the U.S. becoming the world’s largest LNG exporter in 2023, surpassing Qatar. Qatar, however, has plans to double its LNG production to 160 million metric tons per annum by 2030, ensuring its central role in the global energy market.

Qatar’s involvement with China and Russia pre-Ukraine invasion, along with its strategic LNG deals, positions the country as a critical player in energy security. This evolving situation is reshaping global energy alliances, with the U.S. and its allies aiming to secure LNG supplies, especially from Qatar, to counterbalance Russian energy influence.