LATAM Squeeze Displaces West African Crude in Key Markets
A structural shift is underway in global crude oil trade flows, with Latin American (LATAM) supplies displacing West African crude in key markets. This phenomenon, known as the LATAM squeeze, has become a defining theme in global crude oil trade for 2025 and 2026.
The growth of Brazilian pre-salt offshore production and Guyana's deepwater Stabroek block developments have led to a volume surge of approximately 500,000 barrels per day (b/d) between 2023 and 2024. This increase has redirected trade flows across two continents simultaneously.
The key difference between LATAM supplies and West African crude lies in pricing, timing, and delivered costs. Brazilian medium sweet Buzios crude has averaged approximately $5.50 per barrel cheaper than Nigerian Forcados on a delivered northwest Europe basis over the past year.