popular articles

Turkey and Brazil: New Main Buyers of Russian Diesel Post-EU Embargo

Since the EU embargo in February 2023, Turkey and Brazil have emerged as the main buyers of Russian diesel. This realignment of commercial flows is redefining the global diesel market, impacting prices and supply chains.

Please share:

Since the European Union (EU) embargo on Russian petroleum products took effect in February 2023, the dynamics of the global diesel market have significantly changed. Turkey and Brazil have established themselves as the main importers of Russian diesel and gasoil, thus replacing Europe, which was previously the largest buyer. This redirection of Russian exports to new markets has significant repercussions on supply chains and global diesel prices.

The EU sanctions disrupted traditional flows, forcing Russia to diversify its export destinations. In response, Russian diesel exports were redirected to countries offering more favorable commercial conditions, notably Turkey and Brazil. This strategic adaptation aims to maintain Russia’s revenue despite the restrictions imposed by the EU.

Market Adjustments in Turkey

Turkey has absorbed a significant share of Russian diesel exports. In September 2024, Russian diesel shipments to Turkey reached 1.07 million metric tons, up from 1.04 million metric tons the previous month. Turkish imports surged from 65,000 barrels per day (b/d) in early 2022 to an average of 280,000 b/d by late 2023. This notable increase is primarily due to the redirection of Russian diesel exports from Europe and the strategic use of Turkey as a redistribution hub to Mediterranean and European markets.

Brazil’s Growing Dependency

Brazil has also seen its imports of Russian diesel increase, reaching 0.78 million tons in September 2024, up from 0.58 million tons in August. Since the embargo, Brazil has become a key destination for Russian refined products, benefiting from discounted rates compared to other global suppliers. However, Brazilian demand is subject to seasonal variations, as evidenced by fluctuating import volumes earlier in 2024.

The impact of this reorientation on the global diesel market is significant. Diesel prices in Europe, in particular, have experienced increased volatility due to the loss of one of its main suppliers. Russia’s strategic maneuver to maintain diesel exports despite sanctions has led to increased price sensitivity and heightened competition among traditional and new importers of refined products.

Strategic Implications for Energy Markets

The increase in ship-to-ship (STS) transfers near the Italian port of Augusta and around the Greek islands is notable. In September 2024, these transfers totaled 370,000 tons, up from 230,000 tons in August. These operations serve as a redistribution mechanism for Russian diesel to secondary markets. The final destinations for many of these cargoes remain uncertain, complicating tracking and compliance with international regulations.

In contrast, Russian diesel exports to certain African countries such as Libya, Tunisia, Senegal, and Egypt have decreased, reaching 0.44 million tons in September, down from 0.73 million tons in August. This shift indicates a strategic reallocation towards more lucrative or stable markets like Brazil and Turkey.

Market Volatility and Temporary Restrictions

Russia’s temporary ban on diesel and gasoil exports in September 2024 aimed to stabilize domestic fuel prices amid high demand during the autumn harvest. However, analysts expect this ban to be short-lived due to limited storage capacity and Russia’s need to capitalize on strong global diesel margins. This temporary disruption nonetheless highlighted Russia’s crucial role in shaping the global diesel supply landscape.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Donald Trump's announcement to boost oil production to combat inflation and fill U.S. strategic reserves barely moves markets, as Brent prices continue their recent decline.
A persistent oil spill in the Niger Delta, attributed to acts of sabotage, raises major concerns for Nigeria's oil industry, highlighting the sector's security and environmental challenges.
A persistent oil spill in the Niger Delta, attributed to acts of sabotage, raises major concerns for Nigeria's oil industry, highlighting the sector's security and environmental challenges.
In Nigeria, an overturned tanker exploded as a crowd attempted to collect fuel. Local authorities report at least 70 deaths in a context marked by rising gasoline prices and economic hardship.
In Nigeria, an overturned tanker exploded as a crowd attempted to collect fuel. Local authorities report at least 70 deaths in a context marked by rising gasoline prices and economic hardship.
Kimbell Royalty Partners completes a $230 million oil and gas acquisition
Kimbell Royalty Partners completes a $230 million oil and gas acquisition
Unexpected Arrest of the Former Minister of Oil in Niger, Mahaman Moustapha Barké
Sudden resignation of the leader of the Libyan oil company
Sudden resignation of the leader of the Libyan oil company
BP formalizes 4,700 internal layoffs and 3,000 among subcontractors. Disappointing results and a renewed focus on hydrocarbons shape this move. The market observes these choices, influenced by economic and political imperatives.
BP formalizes 4,700 internal layoffs and 3,000 among subcontractors. Disappointing results and a renewed focus on hydrocarbons shape this move. The market observes these choices, influenced by economic and political imperatives.
Sri Lanka confirms a historic investment with Sinopec. A new refining facility will strengthen the country's energy balance.
Sri Lanka confirms a historic investment with Sinopec. A new refining facility will strengthen the country's energy balance.
The drilling of the Katmai West #2 well by Talos Energy in the Gulf of Mexico revealed 400 feet of hydrocarbon reserves, with production estimated at 20,000 barrels per day, strengthening the regional energy strategy.
Following a premature announcement of an oil discovery in Lake Kivu, Rwanda clarified that the work is still in an exploratory phase, with partners being sought to move forward.
Following a premature announcement of an oil discovery in Lake Kivu, Rwanda clarified that the work is still in an exploratory phase, with partners being sought to move forward.
US crude oil reserves dropped unexpectedly, exceeding initial forecasts, due to sustained refinery activity and a trade imbalance between imports and exports.
US crude oil reserves dropped unexpectedly, exceeding initial forecasts, due to sustained refinery activity and a trade imbalance between imports and exports.
Oil and gas production from the Baleine field in Côte d’Ivoire has surpassed expectations, reaching 85,000 barrels per day thanks to the progress of its first two phases, according to the government.
Oil and gas production from the Baleine field in Côte d’Ivoire has surpassed expectations, reaching 85,000 barrels per day thanks to the progress of its first two phases, according to the government.
Global oil demand reaches 102.9 million barrels per day in 2024, driven by a cold winter. US sanctions on Russia and Iran weigh on supply prospects for 2025.
PetroNor sold 881,192 barrels of crude oil at a price of $72.8 per barrel on the PNGF Sud block. This major transaction generates $64 million, highlighting the importance of investments in the Congolese oil sector.
PetroNor sold 881,192 barrels of crude oil at a price of $72.8 per barrel on the PNGF Sud block. This major transaction generates $64 million, highlighting the importance of investments in the Congolese oil sector.
Africa Oil increases its stake to 18% in block 3B/4B off the coast of South Africa. This partnership with TotalEnergies and QatarEnergy marks a crucial step for oil exploration in the Orange Basin.
Africa Oil increases its stake to 18% in block 3B/4B off the coast of South Africa. This partnership with TotalEnergies and QatarEnergy marks a crucial step for oil exploration in the Orange Basin.
Iraq and BP finalize an ambitious agreement to rehabilitate four oil fields in Kirkuk and exploit flared gas, aiming to boost energy production and reduce dependence on Iranian gas.
Iraq and BP finalize an ambitious agreement to rehabilitate four oil fields in Kirkuk and exploit flared gas, aiming to boost energy production and reduce dependence on Iranian gas.
Chevron’s $53 billion acquisition of Hess Corporation remains blocked by contractual disputes and ExxonMobil's opposition. An arbitration decision in September will determine the future of this strategic transaction.
After diplomatic tensions, Algeria and Niger strengthen energy cooperation. Algerian company Sonatrach plans to build a refinery and a petrochemical complex in the city of Dosso, Niger.
After diplomatic tensions, Algeria and Niger strengthen energy cooperation. Algerian company Sonatrach plans to build a refinery and a petrochemical complex in the city of Dosso, Niger.
According to the KOMO Q1 2025 report by KAPSARC, India will dominate global oil demand growth with an additional 220 Kb/d, surpassing China and reaffirming Asia's central role in the energy market.
According to the KOMO Q1 2025 report by KAPSARC, India will dominate global oil demand growth with an additional 220 Kb/d, surpassing China and reaffirming Asia's central role in the energy market.
Cameroon welcomes a new strategic agreement between Tower Resources and Prime Global Energies, mobilizing 15 million dollars to develop the NJOM-3 well, a key offshore oil project planned for 2025.
Cameroon welcomes a new strategic agreement between Tower Resources and Prime Global Energies, mobilizing 15 million dollars to develop the NJOM-3 well, a key offshore oil project planned for 2025.
The offshore oil field Sangomar, operational since June 2024, has surpassed its annual forecasts with 16.9 million barrels produced, strengthening Senegal's strategic energy position.
Nigeria is relying on Seplat Energy to triple its crude oil production to 120,000 barrels per day by June 2025, leveraging strategic assets and unused wells.
Nigeria is relying on Seplat Energy to triple its crude oil production to 120,000 barrels per day by June 2025, leveraging strategic assets and unused wells.
Crude oil stockpiles in the United States decreased by one million barrels last week, a figure lower than expected, due to a drop in exports despite intensified refining activities.
Crude oil stockpiles in the United States decreased by one million barrels last week, a figure lower than expected, due to a drop in exports despite intensified refining activities.
After eight years of inactivity, the Warri refinery in Nigeria resumes operations. This marks a significant step in the country's efforts to rehabilitate its energy infrastructure and strengthen domestic fuel supply.
After eight years of inactivity, the Warri refinery in Nigeria resumes operations. This marks a significant step in the country's efforts to rehabilitate its energy infrastructure and strengthen domestic fuel supply.

Advertising