Bloomberg: Russian oil is blended in Singapore and re-exported

Demand for oil storage tanks in Singapore is skyrocketing, indicating that a stream of Russian fuel is being blended and re-exported around the world, transmits Bloomberg agency.

According to a spokesman for a tank operator and trader’s advisor, Singapore’s tanks are being sold out as interest and profits are rising from mixing cheap fuel supplies from Russia with supplies from other sources. According to them, this process can help hide the origin of the goods.

Singapore has not banned the import of Russian oil or petroleum products, although financial institutions based in the island nation are prohibited from financing or dealing with Russian goods and companies.

Vessel tracking data by Vortexa Ltd. showed that Singaporean terminals in December 2022 accepted more than twice as much Russian naphtha and fuel oil compared to last year. Singapore received 2.6 million barrels of naphtha, nearly 40 times the amount received a year earlier.

Russian oil entering Singapore’s reservoirs is likely to be re-exported to Northeast Asian markets, said Armaan Ashraf, global head of liquefied natural gas at FGE industry consultant. It is likely that hubs such as Singapore and Fujairah will continue to play a role in rebranding these casks for distribution in their respective regions, he added.

On December 3, 2022, the EU countries agreed on a price ceiling for Russian oil of $60 per barrel, which is expected to be reviewed every two months so that the ceiling level is 5% below the price of Urals. The restriction came into force on December 5, along with a ban on the supply of Russian oil by sea to the EU countries. For oil products, the restriction will come into effect on February 5. In addition to the EU countries, the G7 countries and Australia also joined the ceiling.

Ministry of Finance also informedthat the Russian budget in January may receive less than 54.5 billion rubles. oil and gas revenues.