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Brazilian diesel imports surge in September as US gains Russian market share

StoneX, a consultancy, said that Brazil's imports of diesel in September reached their highest level since 2023. This was due to a sharp increase in U.S. volume to compensate for declining Russian supplies, amid high agricultural demand.

Why it's important

The increase in imports is a reflection of the robust domestic demand that Brazil experiences during its soybean planting season, and reflects global market shifts as a result of disruptions in Russian exports. Brazil imports about 20% of its total diesel consumption.

By the Numbers

In September, total diesel imports reached 1,77 billion liters. This represents a 9.4% rise on the previous year. The United States contributed 45.8%, while Russia's contribution fell to just 27%, the lowest level since March 2023. Middle Eastern producers such as Saudi Arabia and Oman contributed 19% while India provided 7%.

KEY QUOTE

Bruno Cordeiro said that the strong growth in imports is due to both an increase in Diesel B (mixed biodiesel), sales in Brazil, and a decrease in diesel A production (pure diesel).

CONTEXT

The Russian market share is declining due to the Ukrainian drone attacks against its refineries, and export restrictions that followed. After Western sanctions, Brazil had become the country's biggest diesel supplier.

Diesel demand typically increases during Brazil's soybean harvest season, when the country is awash in soybeans.

(source: Reuters)