Top Five Issues for Latin American Crude Oil Markets in 2021
2021 will be a critical year of transition for the Latin American oil industry as the region grapples with the tumultuous events of 2020. IHS Markit estimates that production through 2021 will roughly average 70% of total production capacity. This reflects the region's simultaneously tightening supply of heavy sour crude oil and increasing supply of light and medium grades in Brazil, Guyana, and Argentina, shifting purchases of crude from the US to Asia and Europe. The regional crude slate shift has impacted the light-heavy crude differential, which has tightened significantly in 2020, and will remain tight in 2021. Meanwhile, many Latin governments and NOCs have taken further steps on energy transition, increasingly shifting to biomass and renewable technologies. To download the detailed report, please click here.
This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.