Saudis Turn to Russian Fuel Oil as Iran War Saps Fossil Power Supplies

AI Summary

Saudi Arabia is increasing purchases of Russian fuel oil due to reduced domestic supply caused by the Hormuz crisis and Iranian conflict impacts. Despite a decline in Russian fuel oil exports due to Ukrainian strikes on energy infrastructure, Saudi demand remains high to address power generation needs amidst rising temperatures.

Saudi Arabia continues to snap up high volumes of Russia’s fuel oil as the Hormuz crisis has forced shut oil and gas wells and reduced domestic supply for power generation amid rising temperatures. Russia’s vessel shipments of fuel oil and vacuum gasoil (VGO) slumped in May by some 6% from April, due to the continued Ukrainian strikes on Russian energy infrastructure, Reuters reported on Monday, quoting shipment data on LSEG and traders. Despite the overall decline in Russian fuel oil exports, to about 3.2 million metric tons last month,…