Exports of petroleum products are expected to surge to record levels, the outlet says
© Getty Images / Image source RF / Mischa Keijser
Brazil has increased purchases of Russian petroleum products, with imports set to reach record levels this month, Bloomberg reported on Thursday, citing commodity tracking data by energy analytics firm Kpler.
In an effort to build new markets, Moscow has been strengthening its position as a leading fuel exporter to the Latin American country since the EU and G7 imposed an embargo accompanied by price caps on Russian oil and petroleum products in early February, the outlet said.
The Western ban on Russia’s seaborne exports of crude and oil products triggered a reshuffle in the global oil supply, prompting Moscow to pivot to Asia, Africa, and Latin America.
“Brazil is the largest Latin American market, so Russian refiners are focused on supplies to the nation,” Kpler’s lead crude analyst, Viktor Katona, said. “Even Brazilian companies admit that their buying of Russian diesel creates a competitive edge, so I’d expect it to continue going forward.”
Exports to Brazil are set to surge by 25% in August compared to the previous month to around 235,000 barrels a day. This could help Russia overtake the US as Brazil’s top foreign fuel supplier, Kpler data shows.
According to Katona, “getting discounted barrels is a financial boon” for Brazil, as the government is struggling to reduce the cost of transport fuels. Kpler’s estimates show that purchases of Russian diesel have lowered Brazil’s imported prices of the fuel by $10 to $15 a barrel.
Russia has also launched gasoline and naphtha exports to Brazil which are expected to grow, added Kpler.