- Global oil trade flows have changed since Europe banned imports of Russian oil products from Feb. 5.
- At least one 44,000-tonne cargo of ultra low sulphur diesel is also expected to land in Singapore from Kaliningrad in April after a ship-to-ship transfer.
- Traders expect Russian diesel imports into the Asia oil hub to be sporadic as the oil has to compete with supplies from the region which have shorter shipping distances.
Singapore’s diesel imports from Russia hit their highest volume in more than a year in March and are likely to stay elevated in April, according to government data and industry sources.
Ban on russian oil products
Global oil trade flows have changed since Europe banned imports of Russian oil products from Feb. 5 and the Group of Seven Nations, EU and Australia imposed a $100 cap on Russian diesel trade using western ships and insurance.
The curbs are aimed at restricting Russia’s revenues while keeping a lid on prices by allowing supplies into the market.
Singapore’s Russian diesel imports
Data from Enterprise Singapore, Refinitiv, Vortexa and an analyst showed Singapore’s March diesel imports hit 46,000 tonnes (342,700 barrels) after the tanker Stemnitsa arrived on March 24 from the Russian port of Nadhodka and discharged the only cargo for the month.
Singapore’s Russian gasoil imports last hit an all-time high of 95,000 tonnes in December 2021, but the Asian oil hub received only 20,000 tonnes of the industrial fuel from Russia in 2022, Refinitiv data showed.
At least one 44,000-tonne cargo of ultra low sulphur diesel is also expected to land in Singapore from Kaliningrad in April after a ship-to-ship transfer, the data showed.
Traders expect Russian diesel imports into the Asia oil hub to be sporadic as the oil has to compete with supplies from the region which have shorter shipping distances.
Dealing with Russian crude oil
Singapore is not party to the EU ban but a government official said in February that companies in the country will have to consider and manage any potential impact on their business activities, transactions, and customer relationships when dealing with Russian crude oil and refined products.
Singapore typically imports gasoil from South Korea, Taiwan and China and exports mostly to Malaysia, Vietnam and Australia.
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Source: Reuters
