Brazil Surpasses $142B in China Trade Amid Oil Surge
Brazil’s oil exports to China hit record highs, boosting trade to $142 billion as global tensions shift supply chains.
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Brazil’s trade with China reached a record $142 billion by September 2026, driven by a surge in oil exports following the Strait of Hormuz crisis. According to data from the Brazil-China Business Council, Brazil recorded a $26.1 billion trade surplus with China, with oil sales contributing a record $21.8 billion, a 49-percent increase from the previous year.
Oil Gains Outpace Soybean Exports
While soybeans remain Brazil’s largest export to China, accounting for 35.4 percent of total exports, oil has grown to 25.8 percent of the trade. Brazilian beef, however, saw an 8.5 percent decline due to Chinese import restrictions and tariffs aimed at protecting domestic suppliers.
China Becomes Brazil’s Largest Oil Buyer
China now accounts for half of Brazil’s oil exports, purchasing over a million barrels per day, with some days reaching over 1.6 million barrels. India, Brazil’s second-largest customer, takes about 238,000 barrels per day. Brazil’s sales to India have also grown by 165 percent this year, contributing to an overall 28.7 percent increase in Brazilian oil exports.
Global Oil Market Shifts
The growth in Brazilian oil exports appears to be slowing as Persian Gulf production recovers and traffic through the Strait of Hormuz increases. Analysts note that Brazil lacks the production capacity to fully replace Persian Gulf oil, but the surge has provided a significant economic boost, especially after China’s beef tariffs impacted the sector.
Asia Seeks Diversification
Brazil’s oil is compatible with Asian refineries, reducing supply chain risks from the Iran conflict. Japan and South Korea have also shown interest in Brazilian crude, with the Brazilian government actively pursuing these markets. Meanwhile, production in regional competitors like Colombia, Ecuador, and Peru has declined.
Source: Breitbart
