RIO DE JANEIRO | Brazil and the United States are seeing ethanol exports climb as global buyers look for more flexible fuel supply during a period of oil-market stress.
Reuters reported that U.S. ethanol exports rose 20% in the first quarter to 638 million gallons, while Brazil’s exports are expected to more than double in the 2026/27 season to 2.2 billion liters. The two countries are the world’s largest ethanol producers.
The surge is tied to energy security. As the Strait of Hormuz crisis and broader oil volatility pressure fuel markets, some countries are seeking alternatives that can reduce dependence on crude supply routes and imported petroleum products.
For Brazil, ethanol is both an energy story and an agricultural story. Sugarcane producers, mills, blenders and fuel distributors all benefit when export demand rises. For the United States, corn growers and biofuel processors gain from stronger international demand.
The export increase also revives a long-running goal: turning ethanol into a more global fuel market rather than a mostly domestic blending tool. Several Asian countries are raising blending rates but do not produce enough ethanol domestically, creating space for imports.
There are limits. Ethanol cannot replace crude oil globally, and its economics depend on crop yields, feedstock prices, fuel policy, vehicle compatibility and shipping costs. But it can help diversify the fuel mix and reduce pressure in specific markets.
What is confirmed is that exports are rising sharply from both major producers. What remains unclear is whether demand persists if oil prices stabilize or diplomatic pressure eases in the Middle East.
Additional Reporting By: Reuters; biofuel market reporting; CGN Rio de Janeiro Bureau