December 24, 2024 [Oil Price]- Saudi Arabia was the leading buyer of Russian seaborne fuel oil and vacuum gasoil (VGO) exports in November, LSEG data has revealed. According to Reuters calculations based on LSEG data, Russian fuel oil and VGO exports grew 6% month-on-month in November to about 4.26 million metric tons. Asian countries have become top buyers of Russia’s fuel oil and VGO ever since the European Union imposed a full embargo on Russian oil products in February 2023.
India is no longer the biggest buyer of Russian crude. According to the Centre for Research on Energy and Clean Air (CREA), India’s imports of Russian crude fell a massive 55% in November–the lowest figure since June 2022–despite Russia continuing to sell its oil at a discount. India has lately been trying to diversify its oil supplies: Last month, Indian Prime Minister Narendra Modi said during a visit to Guyana that his government views the South American country as key to India’s energy security. Modi told a special sitting of Parliament that he views Guyana as an important energy source and that he will encourage large Indian businesses to invest in the country.
Guyana did not immediately grant Modi’s wish, with India’s External Affairs Minister Jaideep Mazumdar saying talks will continue and that such a deal would ensure “greater predictability.” Guyanese Natural Resources Minister Vickram Bharrat told reporters that Guyana is willing to supply India with a large amount of crude, if Exxon Mobil, the main operator in Guyana’s offshore oil production, agrees to such an arrangement.
“We know Exxon has to do some amount of changes to their lifting schedule and logistics because their preference is for the very large vessels that can accommodate two million barrels mainly because of distance and cost,” Bharrat said.
Meanwhile, CREA estimates that there was a 17% month-on-month increase in the discount on Urals grade crude oil to an average of $6.01 per barrel compared to Brent crude oil. Russia has lost an estimated EUR 14.6 bn in revenues from Urals grade crude exports due to sanctions.
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