Brazilian Diesel Deficit to Peak in October

Brazil’s diesel shortage is expected to peak in October according to the Brazilian Petroleum Institute.

• It has been pressured by strong agriculture demand and low supplies on the global market.
• The IBP estimated that Latin America's biggest economy will register a ULSD deficit of 115 million liters in October, about five times more than an estimated deficit of 23 million liters in August.
• Regulatory support from the National Petroleum Agency, or ANP, and prior planning by fuel distributors will likely make up for the shortfall, the IBP said.
• Brazil is expected to run a ULSD surplus of 40 million liters in November and 62 million liters in December, the IBP said.
• ULSD demand should slide to 3.119 billion liters as the harvest fades in November, with output and imports estimated at 3.159 billion liters. In December, ULSD demand should further retreat to 3.048 billion liters on output and imports of 3.11 billion liters.