Following Brazil's efforts to please China's demands for crude oil, 64% of region's total crude exports were sent to China during December 2019.
In fact during 2019, 63% of Brazilian crude oil exports were given to China, marking a 21% growth in 2019 compared to the last year's records.
The record-breaking Brazilian crude oil exports in December bring a positive development to the crude oil tanker market with a strong tonne-mile upside generated by the long-haul trade from Brazil to China.
...as BIMCO’s Chief Shipping Analyst, Peter Sand said.
Moreover, the Brazilian crude oil production marked a steady rise through the years.
As data from ANP, Brazil’s National Petroleum Agency presented, around 95% of its oil is produced offshore. Extracting offshore oil deep underneath the surface is a costly process, often requiring the use of advanced Floating Production Storage and Offloading (FPSO) ships.
BIMCO further showed that from 2010 until 2018, the annual average oil production was increased by 34% from 2m/bpd to 2.6m/bpd, which is set to be surpassed in 2019, having averaged 2.7m/bpd in the first 11 months of the year.
For the records, November 2019 also hit a record noting the highest level of production ever. Namely, a total of 3m/bpd was produced, marking a 20% growth in comparison to the same month last year.
Brazilian crude oil production has risen steadily over the past decade, with the exception of 2018. With future production estimated to follow the same growth rate, Brazil could increasingly become a driver of crude oil tanker tonne-mile growth in the coming year, especially if China sustains its increasing appetite for the Brazilian crude oil.
...Peter Sand continued.
Concluding, approximately a 75-80% of the total oil production came from the oil major company Petrobras, which outlined an annual production target of 2.2 m/bpd for 2020, setting to grow to 2.9 m/bpd until 2024. Petrobras is considered to be the "growth driver" for Brazilian's crude oil exports.