Russian exports of petroleum products to Asia via the Cape of Good Hope nearly doubled in July compared to the previous month, reaching a record 1.1mn metric tonnes, according to LSEG shipping data.

This increase is largely due to more ships opting for the longer route around the southern tip of Africa instead of the shortcut through the Suez Canal, Reuters reported on August 15.

According to market sources and shipping data, the majority of these exports consisted of naphtha, totalling 0.83mn tonnes, with additional shipments of fuel oil from the Baltic ports of Ust-Luga and Vysotsk, and low-sulphur diesel from Primorsk port, also on the Baltic.

The exported oil products were destined for Singapore, Taiwan, India, and China, LSEG data cited by the news agency showed.

Since December 2023, traders and ship owners have been rerouting Russian oil products around Africa to avoid passing through the Red Sea, where there has been an increased risk of attacks by Yemen's Iran-backed Houthi group targeting Western or Israeli-owned cargoes.

In March, the Houthis assured both China and Russia that their ships would pass safely through the Red Sea. According to Reuters, some vessels resorted to signalling “Russian crew onboard” or “Russian origin cargo onboard.”

Despite assurances, at least three vessels carrying Russian oil products were hit by the Houthis in 2024, according to the news agency. In May, the Panamanian-flagged M/T Wind was hit going through the Suez Canal. Another recent victim was the Liberia-flagged Chios Lion, which was loaded with about 90,000 tonnes of fuel oil at Russia’s Black Sea port of Tuapse in July. According to the shipping data, the Chios Lion is still stranded in the Suez Canal.

Nevertheless, some vessels carrying Russian oil products still prefer the faster route to Asia via Suez Canal. In total, Russian oil product loadings from western and southern ports reached approximately 9 million tonnes in July, according to LSEG and market sources.

Asia has become the primary market for Russian fuel oil and naphtha exports since the European Union banned the import of Russian oil products in February 2023.

However, in recent months, Russia has experienced more maintenance and repairs at its refineries than anticipated. This was largely owing to increased drone attacks by Ukraine targeting Russian refining facilities, Oil Price reports. Alongside these unplanned repairs to address drone-related damages, some refineries also underwent scheduled maintenance, which led to a reduction in Russia's fuel production and exports earlier this year.

On Wednesday (August 14), the Russian government announced that Moscow would extend its ban on gasoline exports from October through the end of December 2024, as reported by Interfax. This decision is aimed at ensuring stable domestic supply amid seasonal demand and ongoing scheduled refinery maintenance.