Saudi Arabia imported record volumes of Russian fuel oil in June

Saudi Arabia imported a record amount of Russian fuel oil in June, Reuters reported this Thursday, indicating that the purchase was made at a discount.

According to data from the analysis company Kpler, the Arab country imported 910,000 metric tons (193,000 barrels per day) of the fuel, multiplying the annual volume almost by 10 to meet the demand for electricity generation in summer and maintain crude oil exports despite of OPEC+ production cuts.

The increase in fuel oil imports by the kingdom came after the European Union banned the purchase of Russian energy products. In the first half of 2023, Russian fuel oil imports reached 2.86 million metric tons, exceeding the 1.63 million metric tons in all of 2022.

At the same time, Saudi Arabia is forecast to increase fuel oil exports to 1.2 million metric tons in July. Experts believe there is a link between record imports of Russian fuel oil and Riyadh’s promise to cut production.

“We believe there is a link to the cuts, as Saudi Arabia will be incentivized to prioritize its crude exports, thereby prioritizing fuel burning over crude burning,” said Royston Huan, a fuel oil and commodities analyst. from the consulting firm Energy Aspects.

Earlier this month, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman highlighted that his country’s cooperation with Russia in the oil field remains strong. Saudi Arabia and Russia, the world’s largest oil exporters, announced this Monday that they will intensify supply cuts. The OPEC+ cut will remain in place despite strong opposition from the US, which could face higher inflation and risk a recession.

Meanwhile, at the end of May, Kpler reported that Saudi Arabia had significantly increased imports of Russian diesel in recent months. If in March the kingdom imported 114,000 barrels of diesel and gasoil per day, the index reached 173,800 units in April and reached 191,200 in the first two weeks of May. With RT

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