Latin America’s evolving crude outlook

New supply from Argentina, Brazil and Guyana is rich in middle distillates, but optimism in terms of volume growth remains tempered by regulatory and technical risks as well as price volatility

Latin America as a region is home to the second-largest hydrocarbon resources in the world after the Middle East, but factors such as resource nationalism, economic uncertainty and underinvestment have led to slower increases in oil production than in other regions. Yet Argentina, Brazil and Guyana are showing some glimmers of hope. In contrast, Mexican output is continuing to slide. Venezuelan production is likely to depend on US sanctions, while Ecuador’s output drop could be temporarily halted if foreign investment commitments materialise. Most of the new supply from the region is middle distillate-rich, while fuel oil-rich shipments are showing a declining trend. Brazil’s National Petrol