Oil delivery from Brazil to us to continue after the removal of the tariff, said Lobby Group

Energy companies operating in Brazil are expected to continue shipping oil to the United States after several oil products are released from US tariffs, the Head of the Brazilian Oil Lobby Group IBP told Reuters on Wednesday.

Oil is the main export of Brazil to the US and is released from the 10% April tariff imposed on Brazilian exports, but uncertainty about whether commodities will be excluded under the new rates announced on July 9 caused the stopping of shipping almost throughout the month.

However, while President Donald Trump’s decision on Wednesday climbed the tariff against Brazil to 50%, it did not include some of Brazil’s main exports from these steps, which included orange juice, several aircraft products, porridge and energy.

“We are out of the tariff,” said Roberto Ardenghy, President of IBP.

IBP represents an oil company operating in Brazil including Petrobras Petr3, Shell Shel, Ttenergies TTE, ExxonMobil XOM and Equinor EQNR.

Because of the previous uncertainty on tariffs, instead of sending their products to the United States, the company stores oil on a floating production vessel or on cargo ships, said Ardenghy.

Because it takes about 21 days for shipping to reach the US from Brazil, oil delivery is stopped so it is impossible to reach their destination before August 1, he said.

In 2024, Brazil exported a total of 1.78 million barrels per day, of which 243,000 BPD went to the US, according to government data compiled by the Stonex Consultant group.

If there are no exceptions to future oil, Brazil will direct delivery to Europe and India, said Ardenghy.

Magda Chambriard, CEO of Petrobras, an oil company managed by the Brazilian government, also said the company would not be affected mostly and could direct the flow to other regions.

“Placing the tariff on our products is losing and losing games,” said Ardenghy.
Source: Reuters