BRICS OF SOLIDARITY
China Demand Shields Petrobras From U.S. Tariff Fallout
Strong demand for crude oil from Asian countries, especially China, has insulated Brazil’s Petrobras from the worst of the tariff war fallout, chief executive Magda Chambriard told Bloomberg in an interview.
“There is a lot of demand in Asia for our products,” Chambriard told the publication at an industry event in Sao Paulo, adding that China was the biggest buyer of its crude. The country accounted for 52% of Petrobras’ oil exports over the second quarter of the year, according to Bloomberg.
Europe was the Brazilian state major’s second-largest market over the three-month period, taking in 19% of total oil exports. It was followed by the rest of Asia, accounting for 12% of the total or the second quarter. The United States took in 8% of Petrobras’ oil exports, and Latin America accounted for 6%.
The Trump administration slapped 50% tariffs on Brazil last month, prompting expectations that oil flows from South America’s biggest producer will get redirected to Asia. Petrobras’ Chambriard has just confirmed this.
The U.S. was Brazil’s third-largest oil buyer, importing around 189,000 barrels per day in the first quarter of the year, or 11% of Brazil’s total oil exports, according to data from ship-tracking firm Vortexa and Kpler. China and Europe were the top destinations, importing 654,000 bpd and 446,000 bpd, respectively.
In the second quarter, even before the higher tariffs, the U.S. had slipped to number four among the biggest importers of Brazilian crude. The tariffs were President Trump’s choice for penalizing the Brazilian government for the persecution of former president Jair Bolsonaro. In a similar fashion, Trump slapped 50% tariffs on Indian imports to punish the country for buying Russian crude.
Currently, the U.S. is not such a major buyer of Brazilian crude, which further strengthens Petrobras’ resilience to Washington’s trade policies, the CEO of the company suggested in her interview with Bloomberg.
By Irina Slav for Oilprice.com
IEA Considers Brazil's Membership Bid
Brazil wants a seat at the International Energy Agency’s table, filing a formal request this week to move from partner status to full membership.
On Tuesday in Paris, Brazil’s ambassador delivered a letter from Foreign Affairs Minister Mauro Vieira and Mines and Energy Minister Alexandre Silveira to IEA chief Fatih Birol, saying the government wanted to begin the accession process. The ministers pointed to the IEA’s support on energy security, data, and policy analysis, while stressing Brazil’s weight as both a major oil exporter and a leader in renewable power.
“Recognising the challenges that lie ahead in the energy landscape and the strategic support that the IEA provides to its member countries … [we are] pleased to inform you that our government would like to initiate accession procedures to the IEA as a full member,” the letter said.
For the IEA, Brazil’s bid is significant. Latin America’s largest economy brings both heft and contradictions: it is a leader in biofuels and hydropower, yet it is also expanding oil output aggressively. Petrobras, the state-controlled oil major, has committed $111 billion in spending through 2029—$77 billion of which is earmarked for oil and gas exploration and production. The company recently hit record operated output of 4.19 million boe/d in Q2 2025, but has disappointed investors by holding back dividends to fund this expansion.
Brazil’s government has made no secret that higher oil revenues will help fund social programs and even parts of the energy transition. President Lula da Silva argues that emissions reductions require investment—some of which must come from Brazil’s deepwater riches.
At the same time, Brazil has positioned itself carefully within producer alliances. In early 2025 it joined OPEC+, but on non-binding terms that exempt it from production cut quotas. The move gave BrasÃlia a seat at the table while preserving its freedom to chase a 5.4 million bpd production target by 2030.
The IEA accession bid reflects Brazil’s other face: the climate leader that will host COP30 and touts its renewables-heavy power grid. Solar has surged, nuclear is expanding, and biofuels remain central. For Fatih Birol, the IEA’s executive director, Brazil is “a cornerstone of the global energy system today and its importance is only set to increase.”
That dual identity—climate champion and oil growth engine—will shape Brazil’s role inside the IEA. Membership, if approved, would tie the country more tightly into international cooperation on energy security and transitions, even as Petrobras drills deeper into the pre-salt.
By Julianne Geiger for Oilprice.com
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