US to deliver more diesel to Brazil than Russia in week ending Dec. 8: CAS

The US is expected to be the main diesel source for Brazil in the week ending Dec. 8, preliminary S&P Global Commodities at Sea(opens in a new tab) indications showed on Nov. 29. From Dec. 2 to Dec. 8, the US deliveries to Brazilian ports are anticipated to be 6% greater than those from Russia.

Preliminary data from CAS shows that 3.8 million barrels of gasoil and diesel are scheduled to be discharged at Brazilian ports next week, 24% lower than the volume scheduled for this week. From the US, 1.9 million barrels of diesel are expected to arrive by Dec. 8, which is 102,738 barrels more than the 1.8 million barrels scheduled to arrive from Russia. In the week ending on Dec. 1, around 5 million barrels of gasoil and diesel were scheduled.

According to the daily report of the Association of Brazilian Fuel Importers, or Abicom, released on Nov. 22, the average domestic diesel price in the country was 5% (Real 0.16/liter) lower than the import parity level. This makes diesel imports unfavorable and may reduce diesel imports from mid-sized and smaller distributors. Paranaguá port, in Paraná state in South Brazil, was the port with the highest number of ships scheduled to discharge in the next week, with around 1 million barrels expected to arrive from Dec. 2 to Dec. 8. Market participants recently reported that ULSD was being heard at an FCA premium of Real 30/cu m over Petrobras' reference posted prices in Paranaguá, but no bids were heard recently. Santos port, in São Paulo state in Southeast Brazil, was the second port, with 928,539 barrels scheduled.