Latam’s oil trade is being rerouted by the Middle East crisis

AI Summary

Middle East supply disruptions have pushed the global crude oil balance into an estimated deficit of 1–2 million barrels per day, with medium and heavy grades particularly scarce. Latin American crude is being rerouted to help replace disrupted supply, reshaping trade flows to Europe and other markets.

Medium and heavy crude is the market’s real shortage Middle Eastern supply outages have pushed the global crude balance into a deficit of roughly 1 to 2 million b/d, with these outages driving down the availability of heavier grades in particular. Alternative sources of medium-density supply are increasingly scarce. Europe, which lacks domestic medium-density crude ...