-Petrobras, Brazil’s state-controlled oil giant, is plowing through a global oil glut expecting that exports to China will soon rebound, and with extensive storage capacity helping it endure in the meantime.
Demand destruction from the Covid-19 pandemic has prompted producers globally to shut in barrels nobody wants. While there’s no real winners with oil prices at historic lows, Brazil may be uniquely situated to weather the crash. Petroleo Brasileiro SA, Petrobras’s official name, cut output in late March and early April, but it’s been largely boosted since. In a report on Monday, the company cited confidence that sales to its biggest crude market by far will rise as China’s recovery from the pandemic expands and factories gear up.