Traders at Singapore’s flagship bunkering hub have turned to Russian fuel oil to replace dwindling Middle Eastern supplies after the Iran‑related conflict tightened the Strait of Hormuz. April imports of Russian grade oil more than doubled the 2025 monthly average, according to Vortexa data, setting a near‑record level not seen since 2016. Ship owners cite reliability and lower freight costs.

Under G7 and EU rules Russian fuel oil remains sanctioned, but a $45‑per‑barrel price cap lets Western‑flagged vessels transport it. The United States temporarily lifted its seaborne sanctions, encouraging the shift. Gulf shipments to Singapore fell from 522,000 barrels per day in Jan‑Feb to 336,000 in Mar‑Apr, while Russian cargoes rose from 372,000 to 585,000 barrels per day, Vortexa shows, and easing jet fuel costs.

Rising reliance on Russian oil has pushed Singapore’s bunker inventories down about 11 % in the past fortnight, tightening an already thin supply market. Argus reports bunker fuel prices remain roughly $800 a tonne above January levels despite a modest dip from March’s peak. With Asian ports willing to pay premiums, the city‑state’s higher purchase price ensures Russian cargoes keep flowing, and customers are scrambling for allocations.