According to Reuters data, Saudi Arabia imported about 647,000 tonnes of Russian fuel oil between April and June, compared with 320,000 tonnes a year earlier. Saudi Arabia is one of the relatively few countries that uses crude oil to generate electricity, although it has taken steps to reduce that amount by boosting natural gas production and converting power plants to natural gas so that more crude remains. for export. Discounts on Russian oil and fuel exports due to sanctions have made Russian fuel oil a preferred feedstock for power plans during the summer peak demand period. This increased reliance on Russian fuel, however, is likely to make President Biden’s task of persuading Saudi Arabia to join an oil price cap on Russian oil and Russian fuel even more difficult. The Saudis already have a close working relationship with Russia and signing up to the US oil price cap will kill that relationship. Saudi Arabia is not alone in increasing its intake of Russian fuel. Bloomberg reported earlier this week that Russian diesel and other fuels shunned by European buyers for fear of violating sanctions are being redirected to the Middle East. Some analysts expect the flow of fuel from Russia to the Middle East to continue increasing in the second half of the year. Since June, Russian fuel exports to the Middle East have reached 155,000 bpd, after rising for five straight months, Bloomberg reported, citing data from Vortexa. Fuel shipments from Russia to Middle Eastern buyers have averaged 220,000 bpd so far in July, the data also showed. By Irina Slav for Oilprice.com More top reads from Oilprice.com:
