Why did Petrobras cut its US oil exports to zero in Q1, and what was the primary driver behind the shift in export destinations?

Petrobras cut its US oil exports to zero in Q1 due to a global reshaping of oil flows triggered by the conflict in Iran, particularly after the closure of the Strait of Hormuz, which accelerated demand for alternative crude sources. As a result, China became the dominant destination—receiving around 62% of Petrobras’ crude exports in Q1—up from 33% in Q1 2025, while India rose to second place with 15% (from 14% year-ago), and exports to Europe dropped sharply from 19% to 8%.

What were the key changes in Petrobras’ export composition across major regions in Q1 compared to the same period a year earlier?

In Q1, Petrobras’ export composition shifted dramatically: exports to the US fell from 3% to 0%; exports to Europe dropped from 19% to 8%; exports to the rest of Asia plunged from 28% to just 8%; meanwhile, China’s share surged to ~62% (from 33%), and India’s rose to ~15% (from 14%), reflecting a strategic realignment toward Asia driven by geopolitical disruptions in Middle Eastern shipping routes.