Daily Energy Report
Russia fuel oil buyers-China & Saudis, Rig count, Petrodollar strong, US coal/gas steady, California gasoline idiocy, EU tariffs bite China biofuel, US solar panel fight, and more.
Charts of the Day: China, Saudi Arabia Top Buyers of Russian Fuel Oil in July
Summary
China and Saudi Arabia were the primary destinations for Russia's fuel oil and vacuum gasoil (VGO) exports in July. China received 0.7 million tons, an 18% rise from June, mainly for refining feedstock. Saudi Arabia also saw shipments double to 0.7 million tons, used for power generation during peak summer demand. Despite the EU's embargo on Russian oil products, Asia remains a key market.
Figure (1) shows trends in Russian exports of Dirty Petroleum products (DPP). Most of them are various types of fuel oil. Although exports declined from a pre-invasion level, the decline is relatively limited.
Figure (2) shows who imports these products from Russia. In the first half of 2022, most fuel oil exports went to the US (most of the gray area). Then the US stopped importing from Russia. Other countries replaced the US, mainly China, India and Malaysia.