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Saudis Turn to Russian Fuel Oil as Iran War Saps Fossil Power Supplies

Saudi Arabia is purchasing significant volumes of Russian fuel oil and vacuum gasoil due to supply disruptions from the Hormuz crisis affecting domestic oil and gas wells. Russian fuel oil exports declined 6% in May to 3.2 million metric tons due to Ukrainian strikes on energy infrastructure, but Saudi demand remains strong amid rising temperatures and domestic power generation needs.

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Saudi Arabia continues to snap up high volumes of Russia’s fuel oil as the Hormuz crisis has forced shut oil and gas wells and reduced domestic supply for power generation amid rising temperatures. Russia’s vessel shipments of fuel oil and vacuum gasoil (VGO) slumped in May by some 6% from April, due to the continued Ukrainian strikes on Russian energy infrastructure, Reuters reported on Monday, quoting shipment data on LSEG and traders. Despite the overall decline in Russian fuel oil exports, to about 3.2 million metric tons last month,…

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https://oilprice.com/Latest-Energy-News/World-News/Saudis-Turn-to-Russian-Fuel-Oil-as-Iran-War-Saps-Fossil-Power-Supplies.html

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