With Russia’s hostilities against the Ukraine having triggered a chain of responses from the west that include sanctions against its oil exports, Brazil’s Institute of Oil and Gas (IBP) is pointing to the supply ‘hole’ in the global oil industry as one from which Brazil can Benefit.
IBP’s Executive Director Fernando Delgado is quoted recently as saying that with Russia having rapidly lost ground as a supplier on account of western sanctions, the current imbalance in the market could redound to the benefit of Brazilian suppliers. IBP is a private, nonprofit organization that is focused on promoting the development of Brazilian national industry oil, gas and biofuels, aimed at an industry competitive, sustainable, ethical and socially responsible.
The current conflict between Russia and the Ukraine has pushed oil prices to its highest levels since 2014, a circumstance whch, Delgado says, could benefit Brazil, which, over the past ten years has become a major oil producer and exporter. Delgado surmises that Russia’s loss of room as a supplier will now open up significant possibilities for other international suppliers, including even Iran and Venezuela and even Brazil on account of that country’s already consolidated market. In the current scenario, Delgado is reportedly of the view that on account of the prevailing circumstances, Brazil could benefit from the high demand a circumstance that will provide a strong incentive for the country to step up production.
