Brazil's crude oil production soared to a record high in June, with non-OPEC oil-producing countries unexpectedly becoming the "stabilizer" of the global oil market.

In June this year, Brazil's crude oil production reached a historical high. The continuous increase in supply from oil-producing countries far from the Middle East has, to some extent, buffered the impact of the Iran conflict on the global energy market. According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), Brazil's average daily crude oil production in June reached 4.5 million barrels, an approximate year-on-year increase of 19%, and a month-on-month increase of around 4% compared to May. Including natural gas, the total oil and gas output reached an average of 5.8 million barrels of oil equivalent per day. As military conflicts between the U.S. and Iran disrupt shipping in the Strait of Hormuz, crude oil exports from the Middle East are under pressure. The production increases from Brazil and other oil-producing countries are filling the supply gap created by this situation. Before the conflict erupted, about one-fifth of global oil transportation passed through this critical waterway. The conflict has also completely changed the market's previous expectations for an oversupply of oil this yearoriginally, the market anticipated an oversupply based on increased production from non-OPEC oil producers. Petrobras, as the leading producer in Latin America's largest economy, has played a leading role in this production increase. The company is fully committed to enhancing oilfield extraction efforts, pushing floating production platforms in deepwater oilfields such as Bzios to operate beyond their designed capacities. According to ANP data, the oilfields independently operated or jointly operated by Petrobras account for approximately 87% of the national total output. Among them, the Bzios oilfield is the largest crude oil production area in the country, while the Mero oilfield ranks first in natural gas production. Based on the ANP's daily output statistics, although the current oil and gas production has slightly declined from the peak in June, the average daily output remains above 5 million barrels of oil equivalent.