MOSCOW/LONDON/DUBAI, July 14 (Reuters) – Saudi Arabia, the world’s biggest oil exporter, more than doubled its imports of Russian fuel oil used to power its power plants in the second quarter to preserve its crude stocks for export and to meet the strong demand linked to the summer period.
Russia, hit by Western sanctions since the invasion of Ukraine, considered by Moscow as “a special operation”, now sells its hydrocarbons at reduced prices in China, India and several African and Middle Eastern countries.
Sales of Russian heating oil to these countries pose a new challenge for US President Joe Biden as his administration seeks to isolate Russia and deprive it of large revenues from its energy exports.
Joe Biden is due to visit Saudi Arabia this week in hopes of convincing Riyadh to increase OPEC crude production, which would help lower oil prices, which are exacerbating inflationary pressures.
But the kingdom, which has retained its ties with Russia as part of the alliance between OPEC and other oil-producing countries (OPEC+), has little room to increase its capacities.
Data seen by Reuters shows Saudi Arabia imported 647,000 tonnes (48,000 barrels per day) of fuel oil from Russia through Russian and Estonian ports between April-June, up from 320,000 tonnes in the same period a year ago.
In 2021, Saudi Arabia imported 1.05 million tonnes of Russian fuel oil.
When contacted, the Saudi and Russian energy ministries refused to comment on the subject.
Saudi Arabia has been importing Russian heating oil for several years, which allows the kingdom to reduce its need for crude oil refining for its products and to lower the amount of oil it must use to generate electricity, giving it thus more stocks for crude destined for export to international markets, sold at higher prices. (Reportage Reuters; French version Claude Chendjou, edited by Sophie Louet)
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