Brazil Shipping Diesel from India on Suezmax Crude Tanker

Brazil’s Petrobras has loaded diesel from India on board a Suezmax crude oil tanker for the first such shipment from India in more than a year, according to Reuters ship tracking and sources.

• The tanker loaded 100,000-105,000 metric tons (745,000-782,250 barrels) of ultra low-sulphur diesel at Reliance's Sikka port on May 4-5 after a month-long delay for scrubbing and cleaning.
• The shipment is scheduled to reach Brazil in the first half of June.
• Larger shipments from the conversion of a crude tanker to carry clean products could add a price floor at around $13-14/bbl for now, easing downward pressure on an oversupplied Asian diesel market, sources said.
• Suezmax tanker freight costs on East-to-West routes are around 30% cheaper than for clean product long-range 2 (LR) vessels.
• Brazil received 360k tons of Russian March loading diesel in the past few weeks, with around 177k tons of April-loading cargoes scheduled to be discharged this week. Arbitrage economics for Russian diesel exports have worsened amid Middle East tensions, delaying some cargoes to Brazil.