Since the EU banned Russian oil products, Singapore’s naphtha imports nearly quadrupled in the first quarter of 2023, official statistics indicated.
Reuters calculated from Enterprise Singapore statistics that the Asia oil center bought 741,000 tonnes of Russian naphtha, 23% of Singapore’s total imports.
The fourth quarter last year saw 261,000 tonnes imported.
On Feb. 5, the EU prohibited Russian oil imports, and the Group of Seven Countries, EU, and Australia capped Russian naphtha trading using Western ships and insurance at $45.
The restrictions, which have disrupted global oil trade patterns, aim to reduce Moscow’s income while keeping Russian supply in the market and lowering oil prices.
Singapore exported 946,000 tonnes of naphtha in the first quarter, up 26% from the fourth quarter of 2022. Naphtha is used in gasoline blending and polymers and paints.
Singapore sells naphtha to South Korea, China, Taiwan, and Japan.
Singapore is not part of the EU embargo. Still, an official stated in February that enterprises dealing with Russian crude oil and processed products must examine and manage any potential effect on their business activities, transactions, and customer relationships.
But, Russia has found alternate consumers for its naphtha, sending record amounts to Brazil, Tunisia, and Middle Eastern commercial centers in 2022. Traders and experts predict this trend to continue.
