Brazilian importers have been taking advantage of a continuing gap between diesel imports and domestic prices, Platts said.

• As foreign fuel persisted at lower levels than domestic, orders were ramping up.
• Meanwhile, the thinner spread over Russia-origin diesel was supporting a higher interest in the USGC ULSD.
• The US-All origin diesel spread in South Brazil was 6.27 cents/gal, down from the record 22.19 cents/gal in April.
• Market sources believe this import window will remain open for at least a few more weeks.
• There is market talk of Petrobras raising diesel prices to close the gap, although this has not been confirmed.
• Russian diesel prices are expected to drop, making USGC cargoes less competitive.