The World Cup Runneth Over

As the World Cup kicks off next week, many a watchful eye will be drawn to the pastoral pitches of Brazil. Like many countries that host international sporting events, a flurry of construction and knock on fuel demand will likely ensue. Aside from the short-term economic benefits of being a host nation, larger transitions are taking shape in the Brazilian petroleum industry that will yield broader ramifications for the tanker market for many years to come. The last decade saw Brazil transform from a net fuel importer to a crude oil producing powerhouse. But Brazil’s existing refineries, not unlike the United States’, were built to handle a crude oil type of yore: that said, new refining capacity is due to come on stream in the next few years that will more effectively process the Brazilian crude oils of today. As a result, Brazil will likely evolve into a more balanced petroleum nation perhaps to the detriment of demand for certain tanker sectors. Download here