Record Surge in Saudi Diesel Imports from Russia

Data tracking ships shows that Saudi Arabia is maximizing refining profits by importing unprecedented amounts of low-priced Russian diesel and shipping record quantities to Singapore, where higher profit margins can be achieved. Traders and analysts pointed out that this has allowed Saudi Aramco, the giant oil company, to increase its exports to Singapore in May to record levels, benefiting from better net profits in the East instead of Europe, due to reduced Asian supply during maintenance season. For her part, the head of the special analytics department for the Asia-Pacific region, Serena Huang, stated: "Diesel supplies in Singapore are relatively tight due to refinery maintenance, while supplies from the Middle East are increasing, which may create immediate arbitrage opportunities for traders to move shipments to Singapore."