Brazil diesel demand starts to recover in May

Brazil is experiencing a rebound in diesel sales, with May volumes picking up after a sharp decline the previous month, according to Brazil's oil regulator ANP.

Sales reached 923,000 b/d in May, a 9pc rise from April, which followed a 15pc drop from March levels, according to the agency. Demand last month declined by 9pc from May 2019, after a 14pc annual drop in April, when the Covid-19 crisis and associated economic downturn intensified in Brazil.

The hike in diesel sales in May was sustained by the agricultural sector, especially in the country's center-west region, where the soybean crop supported a 2pc rise from May 2019. The northeast region registered the biggest fall, a 17pc decline from May 2019, followed by the southeast, with a 15pc decline in May, and the northern region, with a 4pc decline from a year earlier.

Gasoline demand reached 490.244 b/d in May, down by 20pc from a year earlier, which eased somewhat from a 28pc annual drop in April. But despite the year-on-year fall, consumption increased by 9pc in May from the prior month.

By Gabrielle Moreira