23 June 2022

Russia is increasing gasoline and naphtha supplies to Africa and the Middle East as it struggles to sell fuel in Europe, while Asia is already taking bigger volumes of Russian crude, Refinitiv Eikon data showed and sources said...

Asian buyers have stepped in to rapidly increase purchases of Russian crude, even though Asia is not a natural market for Russian fuel because Asia refines more oil than it needs and is a net fuel exporter...

At least five cargoes carrying about 230,000 tonnes of gasoline and naphtha were supplied in May-June from the Baltic port of Ust-Luga to Oman and to the UAE oil hub of Fujairah, based on Refinitiv data.

In total, naphtha and gasoline supplies from Russian ports to Oman and UAE have totalled nearly 550,000 tonnes this year compared with zero in the whole 2021, data showed.

Nigeria and Morocco have been major destinations in Africa for Russian gasoline and naphtha in recent months, Refinitiv Eikon data showed and traders said, while several cargoes also were supplied to Senegal, Sudan, Ivory Coast and Togo...

Despite higher shipping costs, supplying Russian oil products to Africa and the Middle East helps trading firms to preserve margins as options to resell oil products in Europe have been limited due to sanctions, traders said...