Brazil's Oil Exports Halve in May Due to Export Tax and Domestic Demand
Brazil's oil exports are projected to decrease by 50% in May compared to the previous year, primarily due to a newly imposed export tax and increased domestic fuel demand. The Brazilian government introduced a 12% export tax in March to mitigate the impact of rising global oil prices on local consumers by retaining more crude oil within the country. Despite record production levels, this measure has significantly reduced Brazil's oil shipments, which have dropped to an average of 216,700 metric tons per business day, a 52% decline year-on-year. The country is expected to conclude the month with approximately 4.5 million tons shipped, a substantial decrease from 10.1 million tons in March and 9.5 million tons in May 2025. In terms of revenue, Brazil's oil shipments have generated $152 million per day, marking a 24% year-on-year decrease. 
