Russia Continues to Increase Fuel Oil Exports to US

Data from Refinitiv Eikon and Traders showed that Russia continued to increase its fuel oil exports to the United States, rising 16% in July compared to June, to 1.078 million tons, and replacing crude oil supplies from Venezuela. Demand for Russian fuel oil is also supported by its attractive price and low shipping costs.

The United States imposed sanctions on Venezuelan oil last year in an effort to tighten the screws on President Nicolas Maduro.

And because many US refineries process heavy crudes, the United States increased purchases of fuel oil, including from Russia. Supplies from Moscow more than doubled to 11 million tons last year compared to 2018, according to Refinitiv Eikon data. Refineries in the United States mainly use Russian fuel oil as a feedstock for further refining and for ship fuel.

Most of the Russian fuel oil shipments to the United States come from the Baltic port of Ust-Luga, according to Refinitiv Eikon data.

From January to July, Russia supplied 6.4 million tons of fuel oil to the United States, heading towards a record high level of 2019 supply, the figures show.