Russian Oil Mixed In Singapore, Then Re-Exported

Demand is soaring for oil storage tanks in Singapore, in a sign that a flood of Russian fuel is being blended and re-exported globally, Elizabeth Low reported for Bloomberg News.

Photo Insert: A spokesperson for Singapore-based Jurong Port Universal Terminal Pte. declined to comment on specific product movements.

Tank space in the city-state is being snapped up due to a rise in interest and profits from mixing cheap fuel supplies from Russia with shipments from other sources, according to an executive from a tank operator and a consultant who advises traders on the matter.

That process can help to obscure the cargoes’ origins, they said. Singapore hasn’t banned the import of Russian oil or petroleum products, although financial institutions based in the island state are prohibited from financing or dealing with Russian goods and companies.

A spokesperson for Singapore-based Jurong Port Universal Terminal Pte. declined to comment on specific product movements, but said the company complies with all applicable sanctions. Advario, Jurong Port, Horizon and Royal Vopak operate commercial tanks in Singapore.

A six-month lease for Singapore fuel oil or crude oil storage rose by as much as 17%-20% in costs over the course of last year, said executives from tank operator firms.

Shiptracking data by Vortexa Ltd. showed that Singapore oil-receiving terminals took in more than double the volume of Russian naphtha and fuel oil in December 2022 as compared to a year ago.

The city-state received 2.6 million barrels of naphtha, nearly 40 times the volume taken a year earlier.

The increased Russian naphtha arriving in Singapore’s tanks are likely to be re-exported to markets in Northeast Asia, said Armaan Ashraf, global head of natural gas liquids at industry consultant FGE, based in Singapore.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic