Oil at Over $100 Puts Spotlight on Latin American Supplies
Output across the region is set to barely budge this year.
The Petroleo Brasileiro SA (Petrobras) MV30 Carioca floating, production, storage and offloading (FPSO) vessel
Photographer: Dado Galdieri/BloombergThe return of $100 oil and repercussions from Russia's invasion of Ukraine have traders and investors wondering where the world can turn to for more supplies. For those looking to Latin America, think again.
The region is a historic commodities exporter, and in previous commodity price cycles it has responded with additional barrels. But this time, it's ill-prepared to pump more, despite demand rebounding from Covid-19, low inventories and geopolitical upheaval as the war in Ukraine brings the possibility of sanctions that would limit the trade in crude from Russia, one the world's biggest producers.