Mercuria suspends Brazil oil products trading
Swiss trading firm Mercuria is suspending its Brazilian oil products operations early next month amid a protracted transition to a free and open downstream market.
Mercuria has been involved since 2016 in Brazil's motor fuels market through its Flamma subsidiary, importing diesel and gasoline through the southern ports of Santos and Paranagua, and Aratu port in the Bahia state.
The company for the past two years has been focused on its diesel business in Paranagua and decided to exit Brazil because a frequently closed arbitrage for diesel imports eroded the branch's profitability.
The opening of Brazil's downstream market is behind schedule as the Covid-19 pandemic disrupted negotiations and infrastructure auctions to sell half of state-controlled Petrobras refining capacity to private companies by the end of 2021. Abu Dhabi's state-owned investment fund Mubadala is the only company on track to secure a Petrobras asset through the acquisition of the 333,000 b/d Landulpho Alves refinery (RLAM), scheduled to change hands during the third quarter.
Mercuria did not respond request for comment.
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