Moscow: In July, Russia’s seaborne oil product exports to Asia via the Cape of Good Hope soared to a record 1.1 million metric tons, nearly doubling from the previous month, according to LSEG shipping data. This surge reflects a growing trend of vessels avoiding the Suez Canal shortcut by taking the longer route around Africa.
The majority of these exports comprised naphtha, totaling 0.83 million tons. Additionally, fuel oil cargoes from the Russian Baltic ports of Ust-Luga and Vysotsk, along with low-sulphur diesel from Primorsk port, also utilized this route. These oil products were destined for major markets in Singapore, Taiwan, India, and China.
Since December, traders have increasingly routed Russian oil products around Africa to evade the Red Sea, where the risk of attacks by Yemen’s Iran-aligned Houthi group is elevated. In 2024, at least three vessels carrying Russian oil products were targeted by the Houthis. Notable incidents include the Panamanian-flagged M/T Wind in May and the Liberia-flagged Chios Lion, which was hit in July while loaded with approximately 90,000 tons of fuel oil from the Russian Black Sea port of Tuapse. The Chios Lion remains adrift in the Suez Canal.
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Asia has become the primary market for Russian fuel oil and naphtha exports following the European Union’s embargo on Russian oil products, which took effect in February 2023. Despite this shift, many vessels continue to prefer the shorter and faster Suez Canal route to Asia.
In March, Yemen’s Houthis assured both China and Russia of the safety of their vessels passing through the Red Sea. Some ships now indicate “Russian crew onboard” or “Russian origin cargo onboard” as a precaution.
Overall, oil products loadings from Russia’s western and southern ports reached approximately 9 million tons in July, according to LSEG and market sources.
