At Singapore, the world's largest ship refueling port, traders are turning to Russian oil to replace lost Middle Eastern supplies as the conflict in Iran continues to disrupt global energy markets. Data from the analytics group Vortexa shows that imports of Russian fuel oil into Singapore surged following the outbreak of hostilities, with April's import volume more than double the projected monthly average for 2025.
The conflict and the blockade of the Strait of Hormuz have driven up global energy prices and triggered shortages of key products such as aviation fuel and marine fuel. The cost of marine fuel is influenced by oil prices. Although Brent crude has retreated from its early April peak near $110 per barrel, it was still trading around $106 per barrel on Thursday.
Under regulations set by the G7 and the European Union, Russian fuel oil is subject to sanctions and cannot be imported by these countries. However, the fuel can be traded in compliance with a price cap, allowing companies to transport it if purchased at $45 per barrel or less. Policy adjustments have been made, including a temporary U.S. exemption for maritime transport of Russian oil, aimed at mitigating rising oil prices.
Singapore itself has not imposed sanctions on specific Russian petroleum products, but traders must adhere to the price cap if Western shipping services are used for transportation. Vortexa data indicates that since the war began, fuel oil imports from the Middle East into Singapore have declined sharply—though increased imports from Russia in March and April helped offset the drop from the Gulf region during the same period.
Combined average daily arrivals from the Gulf fell to 336,000 barrels in March and April, down from 522,000 barrels in January and February. In contrast, average daily arrivals from Russia increased to 585,000 barrels in March and April, up from 372,000 barrels in the previous two months. Based on its cargo tracking data, Vortexa stated that April's arrivals from Russia are set to reach a record high since records began in 2016.
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