Latin America secures strategic long-term oil supply
28 September 2026
When Middle East supply fell by roughly 3.5 million barrels per day in 2026, refiners accelerated the search for alternatives. Latin America added approximately 1 million bpd in response, and the growth pipeline through 2027 is visible and largely already under development. What is less clear is how much of that supply is actually competitive on a delivered basis, and how much of it can reach end markets at the margins the headline numbers suggest.
Rystad Energy examines 16 Latin American crude grades across seven producing countries, assessing supply growth, refinery economics and export logistics through 2027.
Which grades are outcompeting Middle Eastern alternatives in US and European refinery margin rankings
Where freight costs and ancillary charges erode the economics of long-haul routes
Why Europe has emerged as the most competitive destination market for Latin American crude
What the logistics cost stack between wellhead and market means for grade-level netback value