Key facts
- China and India are increasing purchases of Brazilian crude to avoid Gulf shipping disruptions.
- Brazil's oil exports to China surged 95% to $7.2 billion in Q1.
- Brazil's oil production increased marginally by 50,000 to 100,000 bpd since March 2026.
- More than 60% of Petrobras exports are now heading to China.
Trade between Brazil and China reached a record $143 billion in the first nine months of the year, fueled by Brazilian oil sales that surged after the war on Iran disrupted Gulf supply. Brazilian exports to China rose 12% to $84.7 billion, while imports from China grew 9.9% to $58.6 billion, according to the Brazil-China Business Council.
Asian countries, particularly China and India, are increasingly turning to Brazil for crude oil as the conflict in the Middle East and the closure of the Strait of Hormuz disrupt energy trade. China's imports of Brazilian crude averaged about 1.316 million barrels per day between January and May this year, a significant increase from 704,000 bpd in 2025. India's imports averaged about 238,000 bpd in the same period, up from roughly 100,000 bpd in 2025.
Brazil's state oil company, Petrobras, has redirected more exports towards Asia, with over 60% of its exports now heading to China. While Brazil's production has increased marginally, the shift in export destinations is beginning to benefit the country's economy, with rising crude prices expected to support its trade balance.