• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Even Shell Agrees with Climate Change!
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 9 days America should go after China but it should be done in a wise way.
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Oil Rises Ahead of Weekly Inventory Data

Oil Rises Ahead of Weekly Inventory Data

Preview Text: Crude continues to…

Brazil Is Trying To Boost Diesel Imports From Russia

Brazil is in talks to boost diesel deliveries from Russia and the Middle East amid a shortage of the fuel that began several months ago and is currently hurting President Jair Bolsonaro’s re-election chances next month.

Per a Reuters report, the Brazilian government had said earlier this year that it was trying to buy as much diesel from Russia as it could to shore up its supply.

The diesel shortage is not a specifically Brazilian problem, however, and the redirection of flows means the shortage could get worse elsewhere. Europe is particularly vulnerable because of the oil and fuel embargo on Russian hydrocarbons that is due to come into effect later this year and early in 2023 for fuels.

In August, Reuters reported that Europe’s diesel inventories were below the average for that time of the year and as buyers shunned Russian fuels and crude amid sanctions on other Russian imports, replenishment did not take place. The other reason for that was that diesel inventories are also thin elsewhere, notably in the United States.

The tightness in the diesel market was the result of a number of factors, including the switch from gas to diesel for industrial energy generation amid soaring gas prices. Most of these switches were made in Europe and the Middle East, Bloomberg noted in a late-August report.

With Russia supplying some 60 percent of Europe’s diesel, due to dry up in early February next year, European consumers of the fuel would need to act fast to secure alternative supplies from a limited pool. China is a possible savior if it increases its fuel production but there are geopolitical problems with replacing a diesel reliance on Russia with one on China.

In the meantime, as Russia would need new markets for its fuels, Brazil could become a rare beneficiary in a tight supply market.

By Irina Slav for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News