Saudi Arabia: record inflows. File Image / Pixabay.
Saudi Arabia is importing fuel oil at the highest rate in more than a year as it seeks to capitalize on discounted Russian volumes, according to the Middle East Economic Survey.
Citing an informed source, MEES said that Saudi Aramco's trading arm has signed a contract with the Litasco trading arm of Russia's Lukoil to take regular delivery of cargoes of Russian high-sulfur fuel oil out to the end of 2022.
The kingdom imported 251,000 barrels a day (b/d) of fuel oil in June according to trade flows from data intelligence firm Kpler, the report said.
Of those barrels, 202,000 b/d came from three facilities which have all taken bumper volumes of Russian barrels in recent weeks for re-export: Tallinn in Estonia, Ain Sukhna in Egypt and Fujairah in the UAE.
Russian fuel oil to Ain Sukhna and Fujairah have been at record highs over May-June according to Kpler, the report said.