Petrobras CEO on cuts in production and investments

April 3, 2020

Regarding cuts in production and investments, Castello Branco pointed out that even without breaking the OPEC + agreements, worsening the market situation, companies would need to adapt to the new level of demand imposed by the covid-19 pandemic.

“I honestly think that this dispute between Russia and Saudi Arabia, although the markets react positively to news from President [Donald] Trump, has been irrelevant in view of the scale of this crisis. The price of oil will stay low because global demand for oil has declined. There are estimates of demand reduction of 20% [20 million barrels / day] ”, said the executive.

“Petrobras, of course, has to insure its production because it has nowhere to store production. This is Petrobras, which is the largest oil company in Brazil. On the other hand, we see, for example, Shell. We had a meeting with them this week and said that they will remain with investments and production ”, concludes Minister Bento Alquerque.

– Castello Branco referred to Donald Trump’s announcement of an agreement to cut OPEC + production by 10 million barrels / day. The group, which involves Saudi Arabia and its cartel partners, Russia and other producing countries, announced an emergency meeting.

– For the market, it was a sign of resumption of negotiations. Brent’s contracts, which ended in June, peaked at $ 36.29 on the London Stock Exchange, up 46% from yesterday’s close. They closed on Thursday (2) quoted at US $ 29.94 (+ 21.02%) and opened up on Friday (3), reaching US $ 33.37.

Source: epbr

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