Brazil Oil Exports Drop by Half in May on Export Tax, Domestic Demand
Brazil's oil exports are set to drop by half in May from a year earlier as an export tax and stronger domestic demand for fuel have limited shipments, according to government data and industry sources.
Brazil imposed the 12% export tax in March, seeking to cushion the impact of higher global oil prices on final consumers by keeping more crude in the country.
The measure is seen as limiting Brazilian shipments at a time of record production and despite demand from countries such as China and India.
Through the third week of May, Brazil's average oil shipments fell 52% year-on-year to 216,700 metric tons per business day, government data showed.
The country is on track to end the month with about 4.5 million tons shipped, down from 10.1 million tons in March and 9.5 million tons in May 2025.
In revenue terms, Brazil's oil shipments totaled $152 million per day in the period, down 24% year-on-year.
StoneX market intelligence analyst Bruno Cordeiro said the decline was mainly driven by the growth in domestic consumption as state-run oil firm Petrobras seeks to ensure supply of refined products.
Petrobras executives have said the firm's refineries are running at full capacity.
(Reuters)
