BEIJING: China has more than tripled its imports of Brazilian oil this year, making it the world’s leading consumer outside of Brazil.
This comes as Petrobras steps up its deals with China in order to guarantee finance. Last month, Petrobras obtained US$7 billion in credit with Chinese banks.
From January to May, 5.4 million tonnes of oil were sent to China, 35% of all Brazilian oil exports. It is the largest purchase hitherto made by a single country in an equivalent period of time.
The volume of oil sent to China was more than double that exported to the United States, which was the largest importer in 2014.
The increase in exports to China has helped Brazil to reach record sales of oil this year. In total, more than 15 million tonnes had been exported by May – a rise of 80% compared to the same period of 2014.
In spite of this, revenues were down. The price of a barrel of oil has fallen by nearly 40% in the last 12 months.
The trend also increases Brazil’s dependency on Chinese demand. Of the ten main Brazilian exports, China is now the largest buyer of four (the others being soya, iron ore and cellulose).
Trade between Brazil and China has accelerated over the last decade, with the increasing prices of raw materials on the world market providing the momentum.
In 2000, sales to China were worth little more than US$1 billion. Last year, this figure stood at US$40 million, fuelled by soy and mineral exports.
