Ecuador's imports of refined products rise due to refinery struggles

As Ecuador grapples with ongoing refinery challenges, market sources have reported a significant surge in imports of refined products, particularly diesel and gasoline.

"It is normal maintenance, but it has taken longer than usual in Ecuador," said a second market source. "That is why they have been importing more diesel and gasoline."

S&P Global Commodities at Sea shows that Ecuador's imports of refined products have been increasing since September, when 4.1 million barrels were imported. The volume rose to 5 million barrels in October, 5.2 million barrels in November, and so far, 3.7 million barrels in December. Since it is still early in the month, the number of imported barrels to Ecuador can still increase in December.

"I think that it is due to transportation or the refining process," said a third market source familiar with the operations of Ecuador's Petroamazonas.

S&P Global Commodity Insights analysts said that Ecuador's overall refining throughput for 2024 is expected to decrease 13.4% from 2023. The decrease in refinery utilization is due to a 65-day maintenance period at the Esmeraldas refinery, which only operated at 32% utilization in August and 43% in October.

The Esmeraldas refiner has a Nelson Complexity Index of 6.36 and a capacity of 110,000 barrels per day.

Platts assessed ULSD DAP Ecuador Cargo at $86.89/b on Dec. 6. The price has been consistently dropping since Nov. 21, when it was assessed at $93.37/b.

"Still seeing good Latin American demand," a US jet trader said on Dec. 9.

"The huge pull from Latin America continues as their refineries are struggling," said a market source.

Platts assessed US Gulf Coast A-grade jet export cargoes on an FOB basis at a 4.00 cent/gal premium to Colonial Pipeline -- the regional pipeline benchmark -- on Dec. 9, unchanged on the day but up 1 cent/gal from the week prior amid increased demand.

"I would imagine the USGC waterborne market is tight," a second US jet trader said on Dec. 6.

Platts assessed the US Gulf Coast jet pipeline benchmark at NYMEX January ULSD futures minus 13.25 cents/gal, up by 1.25 cents/gal on the day. On an outright basis, the assessment rose by 6.34 cents/gal to $2.051/gal on Dec. 9, lifting waterborne jet-A cargoes by the same amount to $2.091/gal.

Platts is part of S&P Global Commodity Insights.