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

RIO DE JANEIRO, Oct 7 (Reuters) - Brazil's diesel imports in September rose to their highest level since December 2023, as U.S. volumes sharply increased to offset declining Russian supplies amid strong agricultural demand, consultancy StoneX said on Tuesday.

WHY IT'S IMPORTANT

The rise in imports reflects robust domestic demand driven by Brazil's soybean planting season and highlights global diesel market shifts following disruptions to Russian exports. Brazil imports approximately 20% of its diesel consumption.

BY THE NUMBERS

Total diesel imports reached 1.77 billion liters in September, a 9.4% increase year-on-year. The United States supplied 45.8% of the total, while Russia's share fell to 27%, its lowest since March 2023. Middle Eastern producers, including Saudi Arabia and Oman, contributed 19%, while India supplied 7%.

KEY QUOTE

"The strong evolution in imports reflects both an accelerated increase in diesel B (mixed with biodiesel) sales in Brazil and a decline in diesel A (pure diesel) production by Brazilian refineries," Bruno Cordeiro, a market intelligence analyst at StoneX, said.

CONTEXT

Russia's declining market share follows Ukrainian drone attacks on its refineries and subsequent export restrictions. The country had previously become Brazil's largest diesel supplier after Western sanctions led to discounted prices for its oil products.

The import surge coincides with Brazil's soybean planting season, which typically increases diesel demand for agricultural machinery and transportation.