UPDATE 1-In rare reversal, Brazil exports diesel to Europe

lunes 9 de mayo de 2016 10:30 GYT

* Two tankers ship diesel in rarely used route

* Move highlights Brazil's struggling economy, traders say (Adds third cargo, analyst comment)

By Ron Bousso

LONDON, May 9 (Reuters) - Brazil has joined a list of countries exporting diesel to Europe, reversing a traditional route and underscoring a weakening of the largest South American economy.

At least three 37,000 tonne cargoes of diesel, on the tankers Torm Gunhild, High Performance and MT Alexandros, have sailed in recent weeks from Brazil to Europe, according to Reuters ship tracking data and traders.

Torm Gunhild is heading to Venice and is chartered by Italian oil company Eni while MT Alexandros has been chartered by trading house Glencore and is set to discharge in the Canary Islands.

High Performance, chartered by BP, is currently crossing the Atlantic after sailing from the U.S. Gulf Coast to Brazil in mid-April before being redirected when it was off Brazil's coast, according to ship tracking data.

Traders linked the rare arbitrage to Brazil's economy, which has struggled with a deepening recession in recent years. Its economic output fell 3.8 percent in 2015 and is expected to decline by the same amount in 2016, according to the International Monetary Fund.

According to trade sources, one of the cargoes loaded distillates off the coast of Brazil from a vessel that originated at India's Reliance oil refinery.   Continuación...