Brazil’s exports of crude oil have been robust so far in August, according to an industry survey. The South American country has been loading more than 1.45 million bpd of crude oil this month, tanker tracking data showed, decreasing slightly from 1.49 million bpd in July. These cargoes will mostly go to Asian markets, especially China.
China is expected to receive about 770,000 bpd of Brazilian crude this month, down from 810,000 bpd in May and June. The decline is mostly attributed to the severe congestion in Chinese ports, such as Ningbo, Qingdao, Dalian, and Lianyungang, where VLCCs are waiting in long lines to discharge their loads. This prompted state-owned Petrobras to ship more to Southeast Asia where it holds storage capacity.
Petrobras is targeting to expand its market share in Asia through new deals with refiners in the region. Indian importers are expected to increase purchases of Brazilian grades as the country tries to diversify supplies away from Middle Eastern producers. It also expressed interest to purchase Brazilian crudes earlier this year, but imports remained limited due to a nationwide lockdown aimed to curb the COVID-19 spread.
