Brazil Surpasses 5 Million Barrels as Gulf Conflict Boosts Non-OPEC Supply

Brazil set a new record for crude oil output in June, boosting non-OPEC supply amid the ongoing Gulf conflict. The country's total oil and natural gas volumes reached 5.8 million barrels of oil equivalent per day, a growth of around 4% compared to May.

The disruption to tanker traffic through the Strait of Hormuz caused by fighting between the US and Iran has led to a shift in the oil market outlook. The conflict removed a large share of Gulf exports, pushing buyers toward other regions, including Brazil.

Petrobras, controlled by the Brazilian state, was responsible for most of the extra crude production. To maximize crude extraction, Petrobras is now pushing its offshore platforms at fields such as Búzios to produce above their original design capacity.