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Brazil Pulling Less Russian Diesel August

OIL PRODUCTS

Brazil is pulling in more diesel volumes from its prior main supplier the US this month as flows from Russia slip according to Kpler figures.

  • Russia-Brazil diesel flows are at 110k b/d so far this month vs 204k b/d for all of July.
  • The US has shipped 66k b/d diesel to Brazil this month, more than double the July average.
  • Brazil has emerged as a key outlet for sanctioned Russian barrels this year with sharp discounts previously pushing out regular US flows, which instead surged across the Atlantic to Europe.
  • Diesel has seen a rare summertime rally across the US, Asia and Europe because of heatwaves and refinery outages.

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