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Imports of Russian M100 fuel oil into Japan almost doubled in March compared to February, according to the latest import data revealed by Japan's Ministry of Finance on Monday.

Japan, the world's third largest oil consumer, imported a total of 275,803 tonnes of M100 fuel oil during the month of March, an increase of 135,803 tonnes on the previous month and the highest monthly total in at least 16 months.

ExxonMobil's affiliate TonenGeneral Sekiyu and Kyokuto Petrolem Industries are said to have been using straight-run M100 fuel oil from Russia for several months in an attempt to reduce feedstock costs and achieve higher margins. Earlier this month, market sources revealed that Vitol had secured an agreement with ExxonMobil Japan to supply 120,000-140,000 metric tonnes of M100 per month for a six month period.

Japanese demand for Russian fuel oil has helped push up the price in recent months from $45-$50 a tonne in December 2007 to levels of $70-75 a tonne. Meanwhile, Chinese imports of Russian fuel oil have dropped as Chinese traders have been forced to look for alternative product sources whilst Japan continues to outbid them for Russian fuel oil cargoes. In March 2008, imports fell in China by approximately 60 percent to 150,000 tonnes.

Latest government data shows that imports of Russian fuel oil still make up a small percentage of Japan's total oil imports. Whilst inflows of Russian fuel oil were valued at $170 million, imports of crude oil were pegged at $13.5 billion with 4.52 million barrels per day (bpd) of crude being imported in the month of March.

Recent data revealed by the Russian Ministry of Energy shows that exports of Russian fuel oil have risen by more than 23 percent in April to 4.149 million barrels per day.