Latin America Faces Contraction in Gasoline Demand

Written by Flavia Marinho

Published on 07/09/2021 at 16:23

Updated on 07/09/2021 at 19:49

Frentista em posto de gasolina Petrobras / Imagem Google

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In The Third Quarter Of 2021, Gasoline Demand Is Expected To Be 190 Thousand Barrels Per Day Lower Than In The Same Period Of 2019, Pre-Pandemic Year

The S&P Global Platts Analytics Oil Market Forecast Report for Latin America indicates that the decline in mobility is still a challenge for the recovery of gasoline demand in the region’s countries in the short term. COVID-19 variants and still relatively low vaccination rates are factors impacting mobility and preventing fuel demand from reaching 2019 levels, the pre-pandemic year.

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According to S&P Global Platts Analytics, a leading provider of information and pricing for commodity and energy markets, gasoline demand in Latin America is expected to be 285 thousand barrels a day higher in the third quarter of 2021 compared to 2020, but 190 thousand barrels per day lower than the same period in 2019. For the fourth quarter, demand is expected to continue below pre-pandemic levels by around 130 thousand barrels per day.

Gasoline Demand in Brazil

In Brazil, adverse weather conditions limited the sugarcane harvest this season, making gasoline “C” (which contains 27% ethanol) a more competitive fuel for drivers compared to ethanol itself.

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According to the report, in the first half of 2021, sales of gasoline “C” were 50 thousand barrels per day higher than in 2020, but still 25 thousand barrels per day below the same period in 2019. Demand in the third quarter of 2021 is expected to grow by 20 thousand barrels per day compared to last year, but the projection is that it will still be 60 thousand barrels per day below 2019.

The report also shows that in the third quarter of 2021, only diesel demand is expected to exceed the figures from 2019. This is due to higher industrial production, economic growth, retail sales, and also cargo transportation. The projection is that during this period, demand for the fuel will be 20 thousand barrels per day higher.

About S&P Global Platts – As the leading independent provider of information and benchmark prices for commodity and energy markets, S&P Global Platts has clients in over 150 countries who rely on the company’s expertise in news, pricing, and analysis to provide greater transparency and efficiency to the markets. S&P Global Platts’ coverage includes oil and gas, power, petrochemicals, metals, agriculture, and shipping. S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence.

Oil Drops Under Heavy Selling Pressure Reaching US$ 66 A Barrel

The price of oil drops to less than US$ 66 a barrel on Thursday, its lowest level since May, pressured by concerns about weaker demand due to rising COVID-19 cases, a stronger U.S. dollar, and a surprising increase in U.S. gasoline inventories. In Brazil, it puts pressure on Petrobras to lower gasoline prices, which saw another adjustment of 3.3% on the last day, August 12.

After five sessions of declining trades on ICE Europe, oil drops under heavy selling pressure, unwinding October positions, the driver contract.

Petrobras Is Pressured to Lower Gasoline Prices as Oil Prices Fall and Ethanol Gains Strength with Parity Above 70%

In this circumstance, the market’s expectations regarding any gasoline reduction hang over Petrobras, following the 3.3% increase on August 12, and raises concerns about ethanol.

Even if today’s drop could be temporary, the fall is steep for oil to return above US$ 70 a barrel in the coming sessions, especially since the alert regarding the advancement of COVID is expected to continue causing stress among speculators with derivatives.

Ethanol prices had seen two significant increases at the plants in the last two weeks and were already at a parity above 70% compared to the competing fuel.

Latin America Faces Contraction in Gasoline Demand

In The Third Quarter Of 2021, Gasoline Demand Is Expected To Be 190 Thousand Barrels Per Day Lower Than In The Same Period Of 2019, Pre-Pandemic Year

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Gasoline Demand in Brazil

Oil Drops Under Heavy Selling Pressure Reaching US$ 66 A Barrel

Petrobras Is Pressured to Lower Gasoline Prices as Oil Prices Fall and Ethanol Gains Strength with Parity Above 70%

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Latin America Faces Contraction in Gasoline Demand

In The Third Quarter Of 2021, Gasoline Demand Is Expected To Be 190 Thousand Barrels Per Day Lower Than In The Same Period Of 2019, Pre-Pandemic Year

Read Also

Gasoline Demand in Brazil

Oil Drops Under Heavy Selling Pressure Reaching US$ 66 A Barrel

Petrobras Is Pressured to Lower Gasoline Prices as Oil Prices Fall and Ethanol Gains Strength with Parity Above 70%

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While the U.S. still faces limitations in deep space, China is developing unprecedented technology with strategic satellites that maintain communication with the far side of the Moon and aims for dominance by 2030.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

The Blood Falls of Antarctica hide a living ecosystem trapped under the ice for over 2 million years, where microbes survive without light, without oxygen, and without ever having seen the Sun.

Bavarian archaeologists unearthed a medieval skeleton that had an articulated iron hand in place of its left arm, and the discovery reveals that doctors were already creating sophisticated prosthetics over 500 years ago.

The CEO of Honor in Spain says that smartphones will change with AI, foldables, and even robot phones; the component crisis is making cheap models more expensive in 2026 and shifting the focus to premium.

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