By ERIC YEP
Asian diesel exports to Latin America will likely fall in
the next couple of years as that market builds new refineries,
"Upcoming refinery additions will reduce the
region's distillate import requirement," ESAI Energy said in a
statement this week. "Crude distillation unit, or CDU, capacity
additions of 550,000 bpd in the region between 2014 and
2016 will offset higher demand," ESAI said.
Diesel output expansion in Brazil will reduce
imports -- especially after 280,000 bpd of added capacity
comes on line in 2016, ESAI said.
Export-dependant oil refiners in India and Singapore have already
said they expect competition from new refineries in the Middle
East and Russia to crimp profit margins.
India's Reliance Industries, South Korea's SK Innovation and
S-Oil, and ExxonMobil, Shell and Chevron with investments at
Singapore's oil refining complex export to
Today between 300,000 and 350,000 tons of diesel a month is
shipped to South America from the Asia-Pacific. That is equal
to around 80,000 bpd of gasoil, Singapore-based shipbrokers
However, frequent refinery outages in countries like
Venezuela may support Asian diesel exports and margins, a
Singapore-based trader said.
Dow Jones Newswires