SINGAPORE – The volume of Russian fuel oil in Singapore waters has risen to the highest level in a year, as a war constricts supplies from the Middle East, ship-tracking data shows.
Around 1.26 million tonnes of the oil arrived in the Republic in April, cargo-tracking and energy market intelligence firm Vortexa told The Straits Times. This was the highest monthly reading since April 2025.
Shipments from Russia rose from 160,155 barrels per day (bpd) in February to 273,565 bpd in April, according to Vortexa. This came as the US and Israel launched an attack on Iran on Feb 28.
Importing Russian oil is not prohibited in Singapore, a spokesperson from the Ministry of Trade and Industry (MTI) said in response to ST queries on recent reports about Russian oil transactions in local waters.
Although Singapore imposed sanctions on four Russian banks and banned some exports to Russia following Russia’s invasion of Ukraine in 2022, these “sanctions are targeted in scope”, MTI said.
“Business interactions with Russian entities, including the importation of Russian oil supplies are not prohibited, unless they relate to products or financial transactions that fall under the sanctions imposed by Singapore,” it added.
Russia, which is one of the world’s largest exporters of fuel oil, is one of Singapore’s main suppliers, said Ms Tng Yong Li, Asia-Pacific fuel oil pricing lead at Argus Media.
She said imports have been driven higher as the Iran war “cut off fuel oil supplies from the Middle East, which typically accounts for an estimated 15 per cent to 25 per cent of Singapore’s total inflows”.
However, she noted that Russian cargoes usually take one to two months to reach Singapore, suggesting that some ships were loaded before the Middle East conflict began.
Ms Lin Ye, vice-president of oil markets at Rystad Energy, observed a significant increase in the imports of low sulphur fuel oil (LSFO), primarily used in the maritime industry by cargo ships, oil tankers and cruise liners.
She said: “Russian fuel oil is typically blended into bunker fuel in Singapore and then either serves the regional market or is re-exported (further away).”
She added that fuel oil exports from Singapore in April were mainly destined for South Korea, China and Nigeria, supporting the Republic’s role as a redistribution centre.
Singapore is also the world’s largest bunkering hub by a wide margin, recording annual bunker sales more than five times that of Rotterdam, the second-largest destination. Bunkering refers to the process of supplying fuel to ships.
But the industry is being challenged as the Middle East conflict has effectively shut down the Strait of Hormuz, which is critical for the supply of oil, gas and other commodities to Asia.
Maritime & Port Authority of Singapore statistics show that Singapore’s bunker sales fell to a 14-month low of 4.35 million tonnes in April.
Around 471,000 tonnes of Russian fuel oil was discharged at onshore inventories, meaning it was stored, during the same month, according to data Enterprise Singapore shared with industry watchers, which was seen by ST. It is unclear if these stocks have been used or resold.
While the trade of Russian fuel oil is not banned globally, markets including the European Union (EU), the UK, Canada and Australia have curtailed imports of the product.
Meanwhile, the US, which had sanctioned Russian oil, issued a temporary waiver in March allowing purchases to aid “energy-vulnerable” countries hit by the Iran war.
The Group of Seven countries, in coordination with the EU, has also imposed a price cap on Russian oil since late-2022. These countries are France, US, UK, Germany, Japan, Italy, and Canada.
The price cap for fuel oil is currently set at US$45 (S$57.60) per barrel. This means that international buyers might be unable to access Western maritime services, such as shipping and insurance, if trade of the oil is concluded above the limit.
Ms Tng said: “It is difficult to accurately track Russian fuel oil cargo movements because of the use of ship-to-ship transfers and opaque shipping arrangements.”
Reuters reported in January that Russian oil tankers were increasingly listing Singapore as a placeholder destination to mask their final buyers, amid growing concerns over Western sanctions.
The report said the waters near Singapore have been used for ship-to-ship transfers, with many vessels ultimately discharging their cargo near Malaysia.
Sanctions elsewhere have reportedly driven the rise of a Russian “shadow fleet”, with vessels turning off or manipulating their tracking systems to enter restricted waters.
Ms Tng said the trading of Russian oil comes with “obstacles and risks”.
“Sanctions exposure may arise if transactions involve sanctioned entities, which can include producers, traders, shipowners, vessels, insurers or financial institutions,” she said.
Because Singapore is a bunkering hub, it faces the pressure to secure a consistent supply of fuel oil, Ms Tng said.
Even so, she believes demand for Russian fuel oil is dependent on how the Iran war develops, as “the resumption of normal transit through the Strait of Hormuz could help restore Middle Eastern flows, reducing reliance on other suppliers like Russia”.
There is also uncertainty about the availability of supply from Russia.
Ms Lin said Singapore will face “growing competitive pressure” for Russian oil with intensifying demand from refineries in China and India.
China is the largest buyer of Russian fossil fuels. It accounted for €7.3 billion (S$10.9 billion) of Russia’s export revenue in April, according to the Centre for Research on Energy and Clean Air, an independent research organisation.
The bulk of China’s purchases took the form of crude oil. This was followed by pipeline gas and oil products, which includes fuel oil.
Earlier in May, an official in India’s petroleum ministry said the country will continue to buy Russian oil as “it is basically the commercial sense, which should be there for us to purchase”.
Drone strikes by Ukraine on Russian energy facilities have also curtailed production.
The International Energy Agency said Russia’s oil product exports declined to 2.2 million bpd in April, which is the lowest level in the agency’s records.
Mr Ivan Mathews, who heads Asia-Pacific analysis at Vortexa, said: “Given the voyage duration, I expect Russian fuel oil arrivals into Singapore to decrease starting in May.”
