- Russia’s diesel exports hit a record high in March despite new sanctions, according to Kpler data.
- Brazil is one of the fastest growing countries in diesel imports from Russia.
- “This is a game of musical chairs, and we have already seen it done with other Russian products such as fuel oil.”
Russia’s diesel exports hit a record volume month in March despite more restrictions on Moscow’s energy supply, according to a commodity analysis firm. cupler.
Since Vladimir Putin launched the war against Ukraine, the United States, Europe, and other Western powers have imposed various sanctions against Russia. The European Union banned imports of Russian refined fuels, including diesel, in February after banning seaborne crude oil imports in December.
Still, Russian oil and diesel exports remain up amid significant price cuts. In fact, crude oil shipments have surpassed pre-war levels thanks to China and India, and Russian diesel exports hit a record high of 1.27 million barrels per day in March, he said. Kpler data show.
But while crude oil exports are largely consolidated by a few large buyers, the opposite is happening for Russian diesel exports, Kpler’s chief oil analyst Matt Smith told Insider.
“Trade Flow [for diesel] While making inroads into many North African countries, other major exporters such as Turkey and Saudi Arabia have increasingly imported Russian diesel in recent months due to favorable pricing,” he said. Told.
“It’s a game of musical chairs.”
Smith noted that some countries, such as India and China, are increasing their imports of Russian goods just for the sake of resale. They are replacing traditional suppliers as trade flows change because of the industry, he added.
“It’s a game of musical chairs that has already been played with other Russian products such as fuel oil,” analysts said.
Brazil, for example, imported virtually zero Russian diesel through the end of 2022, according to Kpler data shared with insiders.
The US sent about 150,000 barrels of diesel per day to Brazil in December 2022, down about 50% in April.
Meanwhile, Brazil’s diesel imports from Russia surged to about 100,000 barrels per day this month, even though the United States is a much closer trading partner than Russia.
Smith said Kpler wasn’t involved in related pricing, but data showed economies were functioning in both Russia and Brazil.
“If it was just a strange cargo, it could suggest that Brazil is a destination of last resort if Russia can’t sell diesel to anyone else, but in the last three months The volumes delivered suggest a more regular and more trending trend,” analysts said. “Russian diesel looks like it’s about to eat US market share in Brazil.”