• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 50 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours How Far Have We Really Gotten With Alternative Energy
  • 10 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 22 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 5 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
Aramco Boosts Dividends, But it Can Ill-Afford to Do So

Aramco Boosts Dividends, But it Can Ill-Afford to Do So

Despite experiencing a significant decline…

Rising Gasoline Prices Bring Bad News for Biden

Rising Gasoline Prices Bring Bad News for Biden

Higher gas prices pushing up…

Brazil’s Oil Exports Surge To Record-High Despite New Tax

Despite a new export tax, Brazilian oil exports have jumped to a monthly record-high this month, Reuters reported on Friday, quoting government data and industry experts.

Brazil’s oil exports soared by 75.4% year over year between March 1 and 24, per data from foreign trade agency Secex, as oil producers did not have time to relocate oil cargoes after a surprise export tax was announced in early March.

The Brazilian government announced at the start of this month that it would collect taxes on crude oil exports for four months in a bid to offset the effects of an earlier decision to keep fuels tax-exempt.

That decision, however, was made without consulting the industry, and it will increase uncertainty about future investments in Brazil’s oil and gas resources, according to Shell, one of the large foreign operators in the South American country.

Shell, together with other international oil majors, in early March filed an injunction against the new oil export tax that the Lula da Silva government introduced surprisingly as of March 1.

Shell has been joined by the local subsidiaries of TotalEnergies, Repsol, Equinor, and Portugal’s Galp in fighting back against the government’s decision.

“This measure, which was announced with no significant consultation with the industry, brings uncertainty to new investment decisions, negatively impacting the country’s competitiveness in the upstream sector – one where Brazil carries significant geological potential,” Shell told Bloomberg.

According to the Brazilian government, the new tax, which will be in place between March and July, will provide Brazil with a better fiscal balance and will help offset losses incurred from not hiking fuel prices in accordance with market prices.  

ADVERTISEMENT

Brazil is one of the world’s biggest crude oil producers not part of the OPEC+ alliance, which is limiting supply by 2 million barrels per day (bpd) through the end of this year. Brazil, alongside the United States, Norway, Canada, and Guyana, will be the main driver of liquids supply growth from outside OPEC and the OPEC+ alliance this year, the cartel said in its latest Monthly Oil Market Report (MOMR) published in the middle of March.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Mamdouh Salameh on April 01 2023 said:
    How could we ascertain that Brazil’s crude exports soared in March by 75.4% if Reuters who reported the news didn’t provide a figure?

    The latest available figures indicate that Brazil is producing 3.24 million barrels a day (mbd), and consuming 2.98 mbd thus leaving only 260,000 barrels a day (b/d) for exports.

    So if its exports in March rose by 75.4%, then they would have risen to 456,000 b/d. This isn’t an earth-shaking volume to have an impact on the global oil market. Moreover, Brazil may soon be hardly able to satisfy its domestic demand once its economy starts to grow.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News