Brazil expands marine fuel supplies amid Strait of Hormuz disruptions

Brazilian state-owned oil company Petrobras is reporting stronger demand for marine fuel amid disruptions to petroleum product supplies from the Middle East, driven by the US-Iran war and interruptions to trade flows through the Strait of Hormuz. According to Hans-Jorg Fuchsloch, Global Head of Bunker Trading at Petrobras, the company’s bunker fuel sales increased by 6% year-on-year in the first half of 2026. Stable fuel availability at Brazilian ports is attracting shipowners seeking alternative bunkering locations.

Petrobras currently sells around 300 thsd tons of marine fuel oil with a sulfur content of 0.5% per month, making it the company’s main bunker fuel product. According to Platts, the price of this fuel delivered to the Brazilian port of Santos was assessed at $766/ton on November 12. Stronger demand reflects changes in international marine fuel trade flows and a shift by some shipowners toward bunkering at ports in North and South America, where petroleum product supplies remain relatively stable.

Disruptions to Middle Eastern supplies have significantly affected the global marine fuel market. According to S&P Global Commodities at Sea, shipments of fuel oil and petroleum residues from ports in the Persian Gulf and Gulf of Oman to Southeast Asia fell to 76 thsd barrels per day in the second quarter of 2026, compared with 353 thsd barrels per day during the same period in 2025. The decline of nearly 78% has increased concerns among shipping companies about fuel availability and encouraged them to seek alternative suppliers.

In response to rising demand, Petrobras is expanding its bunker fuel portfolio. In late September, the company began supplying marine fuel oil with a sulfur content of 3.5%, primarily for container ships equipped with exhaust gas cleaning systems, known as scrubbers. Monthly sales of this product have already reached 60–70 thsd tons. However, Petrobras acknowledges that its production capacity for this fuel remains limited, as Brazilian crude oil generally has a low sulfur content.

Marine biofuels represent another area of development for Petrobras. In 2026, the company signed an agreement with Odfjell to supply up to 12 thsd tons of B24 fuel, consisting of 24% waste-based biodiesel and 76% conventional low-sulfur fuel oil. Starting in 2027, Petrobras plans to expand its marine biofuel supply network to the port of Santos. For international trade in grain, soybeans and other agricultural commodities, the development of Brazil’s bunkering infrastructure is important, as marine fuel availability affects shipping operations, logistics costs and the competitiveness of export routes.

Tags: marine fuel, Brazil, Hormuz