Middle East War Affects Fuel Supply; Singapore Turns to Russia for Large-Scale Procurement

Central News Agency (Singapore, April 25, comprehensive foreign report) — Shipping data shows that since the outbreak of the Iran war, Singapore, the world's largest marine bunkering port, has seen a substantial increase in imports of Russian fuel oil. This reflects how local traders are replacing lost Middle Eastern sources with Russian oil amidst ongoing disruptions in the global energy market.

According to a Financial Times report, after the United States and Israel launched a war against Iran on February 28, leading to the blockade of the Strait of Hormuz, there has been a shortage of crucial oil products like aviation and marine fuel.

Data from the energy shipping market firm Vortexa indicates that fuel oil shipments from the Persian Gulf to Singapore decreased from a combined 522,000 barrels per day in January and February to 336,000 barrels per day in March and April. Conversely, fuel oil from Russia increased from 372,000 barrels per day to 585,000 barrels per day.

Vortexa also noted that Singapore's imports of Russian fuel oil this month have more than doubled the monthly average of last year and are expected to hit a new high since 2016.

Data from the Centre for Research on Energy and Clean Air also shows that Singapore's imports of Russian oil products in March doubled compared to February, with fuel oil seeing the largest increase.

Furthermore, according to data from the maritime data company Veson Nautical, approximately 20 Russian oil tankers have called at Singapore's associated anchorages this year, four times the mere five vessels during the same period last year.

Russian fuel oil is subject to sanctions by the G7 and the European Union, which prohibit member states from importing it. However, traders can conduct transactions within a price cap of $45 per barrel. The United States has temporarily exempted Russian seaborne oil from sanctions to alleviate rising oil prices.

Singapore has not imposed sanctions on specific Russian oil products, but traders using Western maritime services must comply with the price cap regulations.

Paola Rodriguez-Masiu, an analyst at energy intelligence firm Rystad Energy, stated that the shift in global fuel oil sources to Singapore is because local bids are higher than in other regions.

She also warned: “Europe faces considerable risk because Singapore is paying higher prices, so the limited supplies still available are very likely flowing there.” (Compiled by Chang Cheng-chien) 1150425

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