Affected by the international energy supply shortages caused by the conflict in Iran, Brazil’s crude oil exports have seen a surge, with China becoming one of the most important buyers.
According to a report released by the Brazilian Chinese Entrepreneurs Committee (CEBC) on October 16, Hong Kong's English media outlet The South China Morning Post reported that Brazil’s crude oil exports to China increased by 49% in the first nine months of this year, reaching a record $21.8 billion. During the same period, China purchased about half of Brazil’s exported crude oil, making its share nearly seven times that of India, which is the second-largest buyer.
The strong growth in crude oil trade has also contributed to the doubling of bilateral trade between China and Pakistan to record highs during the same period.
According to CEBC's analysis of Brazilian government trade data, from January to September this year, the total bilateral trade between China and Brazil reached approximately 143.3 billion US dollars. Of this amount, Brazil exported goods worth 84.7 billion US dollars to China, a year-on-year increase of 12%; while imports from China amounted to 58.6 billion US dollars, a year-on-year increase of 9.9%.
Brazil's trade surplus with China reached $26.1 billion, accounting for 42% of its global trade surplus during the same period.
This growth occurred as the global oil trade pattern was impacted by the Middle East conflict. With the obstruction in the Strait of Hormuz, Asian energy importers like China accelerated their search for alternative supply sources. As a result, Brazil, located far in South America, gained new market opportunities.
In Brazil's exports to China, soybeans still rank first, but crude oil has become a key driver of bilateral trade growth.
According to CEBC data, in the first nine months of this year, Brazil's exports of crude oil to China reached $21.8 billion, a year-on-year increase of 49%, setting a historical record for that period.
This growth was not entirely attributable to rising international oil prices.
The report shows that Brazil’s crude oil exports to China increased by 27% year-on-year, with export prices rising by 16.8%. Both the quantity and prices of exports have increased, contributing to a significant growth in trade volume.
In terms of market share, the importance of China is even more prominent.
In the first nine months of this year, China accounted for approximately 50% of Brazil’s crude oil exports, maintaining its position as the largest buyer. India ranked second, but its share was only about one-seventh of that of China.
Compared to last year, China’s position in the Brazilian oil export market has been further consolidated.
In 2025, China purchased approximately 44 million tons of Brazilian crude oil, worth about $20 billion, accounting for 45% of Brazil's total crude oil exports.
After 2026, this proportion will further increase.
The proportion of crude oil in Brazil’s exports to China has also increased significantly. In the first nine months of this year, crude oil accounted for 25.8% of Brazil’s total exports to China, a rise of 6.3 percentage points compared to the same period last year. It was only second to soybeans, which accounted for 35.4%.
This change has also affected the export patterns in different regions of Brazil.
The report shows that Rio de Janeiro state has become the state in Brazil with the highest exports to China. The state supplies 89% of the crude oil that Brazil exports to China, and oil trade has become the mainstay of local exports to China.
Meanwhile, the overall export of Brazilian crude oil is also growing.
According to a previous report by Reuters, data released by the Brazilian Foreign Trade Secretariat shows that in September this year, Brazil's crude oil exports reached 11.7 million tons, setting a new monthly record for the country. This figure surpassed the previous record of 11 million tons set in March 2023.
Compared to the same period last year, Brazil’s crude oil exports increased by 42.2% in September, and export revenues rose by 77.3%, reaching approximately $6.5 billion.
Analysts point out that Brazil has been continuously expanding the development of salt under oil fields in recent years, and its crude oil production has continuously set new records, providing important support for export growth.
Brazil's strong performance in exporting petroleum correlates closely with the dramatic shifts in the Middle East this year.
At the end of February this year, after the United States and Israel launched military strikes against Iran, Iran effectively blocked the Strait of Hormuz, severely disrupting oil transportation in the Gulf region.
The Hormuz Strait is one of the most important oil transportation routes in the world, and it also serves as a key route for major Asian energy importers to obtain crude oil from the Middle East.
According to data analysis by the energy transportation company Kpler, more than half of the imported crude oil that arrives in China by sea had to pass through this strait before the conflict occurred.
As shipping is disrupted, the international market begins to look for alternative sources with relatively stable supply.
CEBC pointed out that the tense geopolitical situation in the Middle East, and the risk of interruption to oil transport through the Hormuz Strait, has prompted international buyers to increase demand for stable suppliers. As a result, Brazil, as an important oil exporter, has benefited.
The South China Morning Post pointed out that even though China's total crude oil imports decreased in the second quarter, Chinese buyers still increased their purchases of Brazilian crude oil.
According to data from Chinese customs cited by the U.S. Energy Information Administration, China's crude oil imports decreased by 32% in the second quarter of this year. However, Brazil's oil exports to China continued to grow strongly, indicating that Chinese importers are adjusting their procurement sources.
This change does not only benefit the Chinese market.
According to CEBC data, in the first nine months of this year, Brazil's crude oil exports to the global market increased by 28.7%, reaching $43 billion. Of this total, crude oil exports to India increased by 165% compared to the same period last year.
This indicates that, against the backdrop of global energy supply disruptions, Brazil is becoming an increasingly important source of crude oil for the Asian market.
However, the rapid growth of Brazilian oil exports also has seasonal factors.
Reports indicate that as some oil transportation in the Gulf region has gradually resumed, the growth momentum of Brazil’s exports to China has slowed down.
According to the first-half report released by CEBC in July this year, Brazil's exports to China increased by 22% year-on-year. China accounted for 54% of Brazil’s crude oil exports.
Looking at the cumulative data for the past 9 months, Brazil’s export growth rate to China has dropped to 12%, and China’s share in Brazil’s crude oil exports has also decreased to approximately 50%.
According to statistics from Kpler and another energy transportation data company, Vortexa, after the agreement between the United States and Iran in June this year, as of September, oil exports from Gulf countries other than Iran have recovered to over 81% of pre-war levels.
However, the number of attacks against oil tankers in Iran has increased this month, indicating that regional energy transportation remains uncertain.
Therefore, Brazil's increase in oil exports to China this year reflects both the deepening of energy trade relations between the two countries and is also influenced by factors such as international oil prices, transportation conditions, and geopolitical situations.
While oil exports have increased significantly, the overall economic and trade relations between China and Pakistan continue to expand.
According to the CEBC report, during the first nine months of this year, bilateral trade between China and Pakistan reached approximately 143.3 billion US dollars, setting a record high for the same period.
Brazil's exports to China, imports from China, and total bilateral trade have all set record highs during this period.
China continues to maintain its status as Brazil's largest export destination and largest source country of imports.
In terms of export structure, soybeans, crude oil, and iron ore remain Brazil's three major export items to China, accounting for more than 77% of the total exports.
Among them, soybean exports reached approximately 30 billion US dollars, with China purchasing about 70% of Brazil’s exported soybeans; crude oil exports amounted to 21.8 billion US dollars, ranking second; iron ore exports were about 13.8 billion US dollars, ranking third.
Apart from traditional bulk commodities, there has been a noticeable increase in exports of agricultural and mineral products to China.
Brazil's pork exports to China increased 113% year-on-year in terms of value and 86% in terms of volume.
In addition, Brazil's exports of lithium spodumene to China amounted to $172.3 million, a year-on-year increase of 339%. China purchased 97% of Brazil’s exported lithium spodumene products.
In terms of imports, Brazil's imports from China increased by 9.9% year-on-year, reaching $58.6 billion. Industrial products made in China, machinery and equipment, as well as new energy vehicles continue to enter the Brazilian market.
These data indicate that Sino-Brazilian economic and trade cooperation is reflected not only in China’s demand for Brazilian agricultural products and energy resources, but also in Brazil’s imports of Chinese manufactured goods.
It is worth noting that Brazil’s trade surplus with China reached 21.6 billion US dollars, which is equivalent to 42% of the country’s global trade surplus during the same period.
This figure indicates that the Chinese market continues to provide important support for Brazil’s trade surplus.
In the long term, Brazil has been expanding the development of salt deposits in recent years, resulting in continuous increases in crude oil production and export capacity. China, on the other hand, is one of the world’s major crude oil importers. The two countries have a strong complementary relationship in the energy sector.
However, among the export growth in the first nine months of this year, some of it was due to supply disruptions caused by the Middle East conflict and the rise in international oil prices. As transportation in the Gulf region gradually recovers, whether Brazil’s oil exports to China will continue its previous high growth remains to be seen.
In any case, the latest trade data once again highlights the significance of the Chinese market in Brazil's foreign trade: in the first nine months of this year, approximately one barrel of crude oil was exported to China for every two barrels exported by Brazil.
