Russian Fuel Could Replace Venezuelan Heavy Fuel Oil on the U.S. Market

VygonConsulting expert Ivan Timoshenko told The Russian satellite news agency that Russian oil products, mainly fuel, could smoothly replace Venezuelan heavy oil on the U.S. market because of its low price and low freight costs.

"Exports of Russian oil products to the United States have increased significantly," he said.

The United States imported 67.9 million barrels of Russian oil products from January to May 2020, according to the U.S. Department of Energy's Energy Information Administration. That's 60% more than the same period last year, experts say.

The reason for the sharp increase in interest from U.S. importers in Russian products, He said, is to replace heavy Venezuelan oil under sanctions that U.S. plants use to process.

"Russian fuel is suitable for this purpose," the expert said. In addition to the low price, it is also competitive in terms of freight, which makes it relatively cheap to ship by sea."

Russia's exports of petroleum products to the United States rose to a 16-year record, reaching 9 million tons or $2.2 billion in the first half of the year, Russian business consultancy Ria Novosibyria reported Tuesday, citing the Federal Customs Service.