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Brazil to lead Latin America oil demand

By BNamericas Wednesday, July 11, 2018

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Oil demand growth in non-OECD Latin America this year is forecast to increase 90,000b/d to 6.6Mb/d and by 130,000b/d in 2019, according to OPEC.

In its monthly report released on Wednesday, the oil cartel said that Brazil is expected to be the main growth driver on projected higher transport fuel offtake as the country's economy "gains momentum."

OPEC highlights increasing demand for middle distillates in Argentina and strong demand for residual fuel oil and gasoline in Ecuador.

Consumption in OECD member Mexico, however, is forecast to decline slightly in 2018 and be flat next year, according to the organization.

SUPPLY

OPEC expects 2018 oil supply in non-OECD Latin America to increase by 130,000b/d to 5.27Mb/d, up by 20,000b/d from the previous report, and for supply to grow by 350,000b/d in 2019 to 5.62Mb/d.

"Latin America has been the first-highest growth driver thus far in 2018 among the developing countries," highlights OPEC, which adds that Brazil is the main country set to experience growth this year as projects ramp up.

Read Brazil oil and gas production grows in May

A minor increase is forecast for Argentina while declines are expected in Colombia and Latin America "others."

Reduced supply also is projected for Mexico due to the lack of new proejcts and lower output at mature fields.

Read Pemex May crude output down 8%

OPEC's July report is available here

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