Saudi Arabia has imported oil from Kuwait for the first time in more than two years, in a strategic effort to satisfy rising summer energy demands. This change occurs as discounted supplies from Russia have decreased. According to maritime analytics firms Kpler and Vortexa, Saudi Arabia’s imports of Kuwaiti high sulphur fuel oil (HSFO) surpassed 180,000 metric tonnes (approximately 37,000 barrels per day) this month.
Saudi Arabia’s reliance on Kuwaiti fuel represents its first purchase since 2022. The decision keeps more Kuwaiti supply in the Middle East, supporting benchmark prices in Singapore despite a broader reduction in Middle Eastern exports.
Aramco Trading recently won a tender for 130,000 tonnes of very low sulphur fuel oil (VLSFO) from Kuwait’s Al Zour refinery, with loading set for August 11-12. The cargo was reportedly traded at a $8 discount over Singapore VLSFO rates on a free-on-board Kuwait basis.
Russian fuel oil continues to dominate Saudi imports, accounting for 441,000 tonnes in July, or almost 30% of overall imports. However, this figure is a huge decrease from the 750,000 tonnes imported last year. The rising rivalry between China and India has prompted Saudi Arabia to seek alternative suppliers such as Kuwait.
