RIO DE JANEIRO, July 30 (Reuters) - Energy companies
operating in Brazil suspended oil shipments to the United States
after President Donald Trump announced 50% tariffs against the
South American country, Roberto Ardenghy, president of oil lobby
group IBP, told Reuters on Wednesday.
Oil is Brazil's top export to the U.S. and was exempt from
the 10% April tariff imposed on Brazilian exports, but it is
unclear whether the commodity will remain exempt under the new
50% tariff set to come into effect on Friday.
"This time we have no way of knowing," said Ardenghy. IBP
represents oil companies in Brazil, such as Petrobras
, Shell, TotalEnergies, ExxonMobil ( XOM )
and Equinor ( EQNR ).
"Business involving cargo that has to leave Brazil for the
U.S. is suspended," Ardenghy said.
Instead of shipping their product to the United States,
companies are storing oil on floating production vessels or on
cargo ships, Ardenghy said.
Because it takes around 21 days for a shipment to reach the
U.S. from Brazil, oil shipments were stopped once it became
impossible to reach their destination before Aug. 1, he said.
If there is no exemption, Brazil is likely to redirect
shipments to Europe and India, he said.
"But, for now, everything is on hold, waiting for what will
come on August 1st," he added.
In 2024, Brazil exported a total of 1.78 million barrels per
day (bpd), of which 243,000 bpd went to the U.S., according to
government data compiled by consultancy group StoneX ( SNEX ).
Petrobras, Brazil's state-run oil firm and a top oil
producer and exporter, has sent about 8% of its oil exports in
the second quarter, the firm said in a filing on Tuesday.
Earlier this month, Petrobras Chief Executive Magda
Chambriard told Reuters that the company may redirect the oil it
sells to the U.S., sending more to Asia and Pacific markets if
the higher U.S. tariffs for Brazil come into effect.