São Paulo – Brazil more than doubled its imports from the Arab countries in value in January due to high global oil prices. The main products supplied by the region to the Brazilian market were mineral fuels, which stepped up by 711% in value year on year, a survey of the Market Intelligence department of the Arab Brazilian Chamber of Commerce (ABCC) reported based on data provided by the federal government.
Overall Brazilian imports of Arab goods reached USD 772 million in January, up 137% year on year. Mineral fuels accounted for more than half of this, at USD 507 million, and crude oil accounted for the highest volume. In January 2021, Brent crude oil costed an average of USD 53.60 compared to USD 83.92 last month. This week, prices have skyrocketed again due to the Russian-Ukrainian conflict.
“The significant growth of mineral fuel imports is explained by their increased prices in the global market,” the analysis by the ABCC Market Intelligence reads. High oil prices have been a challenge for countries across the world as they directly impact fuel prices and inflation. Economic recoveries following the COVID-19 pandemic slowdown have boosted consumption.
Along with inorganic chemicals, mineral fuels were the product group that most influenced the increase in Brazil’s imports from the Arab countries in value. The second most important goods exported from the Arab countries to the Brazilian market, fertilizers, were down 1.7% year on year. Revenue from plastic and aluminum sales from the Arabs to Brazil also declined, by 1.2% and 35.2%, respectively.
Translated by Guilherme Miranda
