Brazil oil output hits record as Middle East conflict disrupts supply

Investing.com -- Brazil's oil production reached an all-time high in June, as increased output from producers outside the Middle East helped offset supply disruptions caused by the conflict in Iran.

Crude production in Brazil climbed approximately 19% from a year earlier to 4.5 million barrels a day in June, according to data from the National Agency of Petroleum, Natural Gas and Biofuels. This marked a roughly 4% increase from May. Combined oil and natural gas production reached 5.8 million barrels of oil equivalent a day.

The production increase from Brazil and other suppliers has helped compensate for reduced exports from the Middle East, where fighting between the United States and Iran has disrupted shipping through the Strait of Hormuz. Before the conflict began, approximately one-fifth of global oil supplies passed through the waterway. The war altered earlier forecasts for an oil surplus this year driven by production from countries outside the Organization of the Petroleum Exporting Countries.

State-controlled Petrobras has driven the additional output from Latin America's largest economy. The company is working to extract as much crude as possible from its fields, operating its offshore platforms at Búzios and other deep-water locations above their designed capacities.

Fields operated by Petrobras represented about 87% of total output, either independently or through partnerships, the agency reported. Búzios was the top oil-producing field, while Mero led in gas production.

Daily production data from the agency shows that oil and equivalent output has stayed above 5 million barrels a day, though it has decreased slightly from the June peak.

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