Russian Fuel Exports to Asia via Africa Reach All-Time High

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

Last month, Russia’s shipments of fuels via the Cape of Good Hope en route to Asia jumped to a record-high volume of 1.1 million metric tons, as more tankers took the longer route instead of the Suez Canal, per the data.

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

Despite the fact that Russia isn’t being targeted by the Iran-backed Houthis, vessels are not adding another risk by taking the Red Sea route to Asia.

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

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

In recent months, Russia has had higher-than-expected maintenance and repairs at its refineries after Ukraine stepped up early this year its drone attacks on the Russian refining capacity. In addition to unplanned repairs to fix damages from the drones, some refineries underwent planned maintenance, which dragged down Russia’s fuel output and exports earlier this year.

On Wednesday, the Russian government said that Moscow is extending its ban on gasoline exports from October to the end of December 2024, as it seeks to keep domestic supply stable amid seasonal demand and scheduled repairs at refineries.

By Tsvetana Paraskova for Oilprice.com

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