The European Union's embargo on Russian oil products, which went into effect on February 5, has resulted in the diversion of Russian diesel not only to Asia, Africa and the Middle East, but also increasingly to Latin America.
For the month of March, Russia exported more than 580,000 tonnes of diesel to South America and Latin America, Reuters reports, citing Refinitiv Eikon data, with 440,000 tonnes of that going to the Brazilian market.
That compares to a total of 663,000 tonnes from January through March, up from 74,000 tonnes for the entirety of last year, Reuters noted.
Turkey has also been scooping up Russian diesel that would normally have gone to Europe, with flows to Turkey hitting a seven-year high, according to Bloomberg.
In the Middle East, Saudi Arabia is also importing increased volumes of Russian diesel, while at the same time, it is sending large volumes of diesel to Europe.
In March, when traders stocked up on Russian diesel, using the low price advantage to increase inventories in the UAE and Saudi Arabia, which in turn have been boosting exports to Europe and Africa.
In mid-March, some 500,000 tonnes of Russian diesel were discharged in the UAE and Saudi Arabia, compared to almost nothing a year ago, Reuters reported, citing Refinitiv, Kpler and Vortexa data.
By Charles Kennedy for Oilprice.com
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