In Brazil, the pace of total oil demand growth slowed during the month of June 2014, easing from the high levels seen in the first five months of 2014. Product demand grew by just below 50 tb/d, or 2%, y-o-y. This was almost half of the year-to-date average of more than 0.10 mb/d, despite the country’s economy sliding into recession in the 2Q14. The pace of transportation fuels consumption has slowed with gasoline and ethanol increasing by 5% and 4%, respectively. Year-to-date data for these two products highlighted significant increases of more than 8% for gasoline and more than 13% for ethanol. Diesel oil was almost flat y-o-y, also easing from the average growth levels seen in 2014 of more than 2%. This is in line with slower economic momentum. Jet/kerosene recorded gains of around 4% slowing from a higher average growth in 2014. The general slower pace of oil demand in Brazil can be attributed to overall weaker economic activities and to seasonal patterns.
The risks for the region’s oil demand in 2014 are skewed a bit to the downside as economic indicators have started to show signs of a slowing pace. Expectations for oil demand growth in 2015, however, remain within the same levels anticipated last month.
In Argentina, oil demand picked up steam in June after moderate May 2014 data, despite dwindling economic growth. Oil demand growth in June was higher by 24 tb/d, or more than 3%, y-o-y with LPG, gasoline, diesel oil and fuel oil posting firm growth, while jet/kerosene was the only product in the product mix that saw a decline. For 2015, the projection for oil demand in Latin America is unchanged from last month’s expectations and indicates growth levels almost similar to 2014. Latin American oil demand is expected to grow in both 2014 and 2015 by around 0.23 mb/d.