Crude Oil Trade: More samba for China as Brazil increases international shipments
There is a lot of optimism to report from Brazil with oil companies getting ready to boost exports as the pre-salt production increases. International shipments of crude oil are estimated to triple over the next decade. The next big challenge for the country is strategically positioning itself in a market that keeps on changing globally. Restructure seems to have been completed with Petrobras now holding no refineries abroad, which makes client relationships rather important for its future performance. The company has been focusing on improving its logistics by taking steps to significantly reduce delivery times. They have also recently opened a crude oil tank in China's Qingdao Port, with a capacity of two million barrels.
Furthermore, Petrobras has been very active in planning improvements domestically as well. They plan to add new logistics bases. A contract was signed in late Q1 with Açu Petróleo for transshipment operations at Açu Port, north of Rio de Janeiro. Norwegian Equinor finalised a deal with Açu Petróleo for ship-to-ship movements at the Açu terminal.
Recent data by IHS Markit's Commodities as Sea suggests shipments to have increased around 25% so far this year. China has absorbed most of Brazil's barrels and flows to the US boosted after the sanctions on Venezuelan crude oil. Trade to other destinations across Asia has also increased fast, especially during June. The growth expected for the second half of this year and in 2020 will further strengthen the role of the Latin American country among the world's leading exporters. Brazilian crude oil industry seems to have taken advantage of Venezuela's collapse, with the country considered the second major driver of global supply growth this year, after the US. Many large international companies are looking to increase their exposure to the country's production, with several projects being already negotiated.
Brazil has become very important for the VLCC market. We have seen an abundance of ship loadings there compared to last year and several ballasters positioning near the Brazilian coast targeting future loadings of the region. The market share of the country in the VLCC demand has been growing fast along with the US Gulf. Ships loaded in the region typically cover much longer distances to destinations across Asia, primarily China.
- Out of Africa into the world: Palm oil trade under global value chain and sustainable initiatives
- An introduction to AIS within the realm of Risk & Compliance
- RCEP - the game-changer in the post-COVID-19 global economy?
- Charting COVID Pandemic Effects on U.S Mexico Trade December 2020
- Congestion related to cold weather and coal shortage in China supported counter–seasonal strength in freight rates
- Monthly Global Trade Monitor - January 2021
- 2020 in Review – How did the Maritime Industry respond to COVID-19?
- Dredging industry builds smaller vessels
RT @IAPHWorldPorts: Register today for our February webinar 'The future for ship-shore community data sharing - a public highway or individ…
AIS is an easy and cheap means to track vessels internationally, positional data can be linked back to a ship that… https://t.co/Zub0QLYUrk