Winter Lifeline for U.S. Fuel Exports at Risk With Latin America Outbreaks
- Fuel demand in region is showing signs of fizzling out
- Mexico, Brazil account for about half of U.S. fuel exports
Total SE refinery in Port Arthur, Texas.
Photographer: Callaghan O'Hare/BloombergThis article is for subscribers only.
U.S. refiners used to be able to count on Latin America as a reliable outlet for exports when fuel consumption was in the doldrums at home. That may no longer be the case because of Covid-19.
After initially picking up when lockdown measures were first eased, demand in Mexico and Brazil -- the top two buyers of U.S. fuels -- slipped back in August and is expected to remain flat for both September and October, said Paula Jara, an analyst at Wood Mackenzie Ltd.