Russian diesel idles off Chile

Russian diesel aboard the tanker Sauri has been drifting off Chile’s northern coast for nearly two months, according to LSEG shipping data and industry sources. The vessel loaded about 30,000 tonnes of diesel at the Russian Baltic port of Vysotsk on February 12, transited the Panama Canal and reached waters near Arica on March 17, Reuters reported. The cargo has not discharged despite fuel shortages in parts of South America and a broader rise in fuel prices since mid-February, according to the report. Traders and shipping sources told Reuters the delay was part of a wider pattern of disrupted fuel flows as buyers and intermediaries sought better returns in a tighter market. ### Why is a diesel cargo sitting off Chile instead of unloading? LSEG data showed Sauri had remained near Arica since March 17 after sailing from Vysotsk with a Russian diesel cargo. Reuters, citing industry sources, said the delay in discharging reflected a jump in fuel prices since mid-February that led some traders to hold out for higher-margin spot deals. (bairdmaritime.com) Arica is a logical waypoint for fuel deliveries into the west coast of South America, but a ship’s presence offshore does not guarantee the cargo is commercially available. Reuters said the episode was the latest in a series of shipping disruptions affecting diesel movements after the Iran war drove up prices and altered trade incentives. (bairdmaritime.com) ### What do the numbers show about this cargo? The cargo size was about 30,000 tonnes, according to LSEG data cited by Reuters. TradeWinds, which identified the vessel as an MR tanker, reported that Sauri had been stuck off South America for about two months with the Russian diesel cargo still on board. (bairdmaritime.com) February 12 and March 17 are the key dates in the ship’s voyage. Reuters said the tanker loaded at Vysotsk on February 12, crossed the Panama Canal and then began drifting near Chile on March 17, leaving the cargo idle through at least May 20. ### How can shortages persist if diesel is physically nearby? (bairdmaritime.com) Parts of South America were grappling with fuel shortages even as Sauri remained offshore, Reuters reported. The report did not say Chile was unable to import diesel generally; it said the episode showed how cargoes can be delayed by pricing decisions, sanctions-linked trade patterns and shifting arbitrage rather than by a lack of molecules alone. That is an inference from the reported facts about the vessel’s delay and traders seeking better spot returns. (bairdmaritime.com) Russian diesel has continued to move to Latin America since Europe stopped taking those products, with destinations and routes changing as sanctions reshaped trade flows. Deccan Herald, summarizing LSEG data in April, reported that Russian diesel shipments to Brazil were rising as global prices surged, underscoring how Latin American buyers have become part of the post-sanctions market for Russian fuel. (bairdmaritime.com) ### What does this say about the wider fuel market? Reuters linked the Sauri delay to a broader surge in fuel prices after the Iran war. CNBC reported in March that shipping through the Strait of Hormuz had been disrupted, with many vessels waiting outside the waterway and only some crossings proceeding under negotiated conditions. (deccanherald.com) Chile’s diesel price reached $1.65 per liter in the week of May 18, according to data compiled from Chile’s Comisión Nacional de Energía by GlobalPetrolPrices. That pricing series showed Chilean diesel at its highest level in the published ten-year range. ### What should readers watch next? May 20 was the latest date Reuters said Sauri was still near Arica with the cargo undischarged. (cnbc.com) The next concrete signal will be a change in LSEG vessel-tracking data, a port call near Arica or another west coast terminal, or confirmation from traders that the 30,000-tonne cargo has been sold and discharged. (bairdmaritime.com) (globalpetrolprices.com)