China Now The Largest Buyer Of Brazilian Crude Oil

China Now The Largest Buyer Of Brazilian Crude Oil

$OIL, $PBR

Brazil’s Crude Oil exports to China increased 3X in the 1st 5 months of this year, making Beijing the largest consumer of Brazilian Crude Oil in the world, said the Folha de Sao Paulo  daily Tuesday.

According to the newspaper, Brazil exported 5.4-M tons of Crude Oil to China from January to May, accounting for 35% of Brazil’s total Oil exports in the same frame. The amount of Crude Oil shipped to China is 2X as much as that to the US

The rise in China’s purchase of Brazilian Crude Oil came at a time when Brazil’s state-controlled Oil giant Petrobras (NYSE:PBR) tried to boost its relations with China. Petrobras signed some financing agreements with China during a recent visit to Brazil by Chinese Premier Li Keqiang.

China’s higher demand for Crude Oil also helped Brazil achieve record exports of 15-M tons from January to May, + 80% from the same frame last year.

But, as Crude Oil prices have fallen significantly over the past months, the record sales did not generate corresponding high revenues.

With increased Crude Oil purchases, China has become the largest buyer of 4 major Brazilian products. The other 3 are Soybean, iron ore and cellulose.

China replaced the United States to become Brazil’s largest trade partner in Y 2009. The Sino-Brazilian trade value amounted to US$86.67-B in Y 2014.

Stay tuned…

HeffX-LTN

Paul Ebeling

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