Clean tanker rates to Latin America are retreating off six-month highs driven earlier this month by a surge of US Gulf coast gasoline and diesel exports to Mexico and Brazil.
Waterborne gasoline and diesel loadings out of the US Gulf coast averaged 1.89mn b/d this month through 19 November, up from 1.40mn b/d in the full month of October, according to estimates from Vortexa.
Mexico has led demand, accounting for 387,800 b/d of exports so far in November, up from 347,000 b/d in full-month October. Brazil has accounted for 211,900 b/d of US Gulf coast gasoline and diesel exports so far in November, up from 123,000 b/d in full-month October.
Easing freight costs
The rise in Latin American demand caused freight rates to soar in early November as exporters scrambled to find tankers. The rally prompted importers in Brazil to seek alternative cargoes of gasoline in Europe.
The Worldscale (WS) rate for clean medium-range tankers from the US Gulf coast to the eastern coast of South America hit a six-month high of WS185 on 3 November, and has since eased to WS155 as of 19 November, per Argus data. Retreating freight rates in the past week have rekindled interest among importers in South America to seek cargoes loading from the US Gulf coast.
Increased exports have weighed on US Gulf coast gasoline inventories, which touched a 34-week low of 79.168mn bl during the week ended 12 November, according to Energy Information Administration data.
The US Gulf coast remained well-stocked with distillate fuel oil, with inventories rising for a second consecutive week to 41.365mn bl.
