Petrobras plans to cut exports with an eye on domestic demand

(Bloomberg) Petrobras expects oil exports in December to be between 40% and 50% below the year average.

Brazil is expected to halve oil exports in December in light of easing restrictions against the coronavirus with the arrival of summer, which tends to increase fuel consumption in the country.

Petrobras (PETR3; PETR4) expects oil exports in December to be between 40% and 50% below the year average, according to people familiar with the situation, who spoke anonymously.

More oil is expected to be processed at its 13 refineries in the country after the reopening of malls, bars and restaurants, the company said in an e-mailed statement.

In São Paulo, cinemas, museums, gyms and beauty salons reopened with occupancy rates of 60%. The city is in phase 4 of a 5-step plan to reopen the economy.

The demand for fuels for road transport in the country now corresponds to 96.1% of pre-pandemic levels and should continue to grow with the beginning of school holidays in mid-December until the end of January. Demand for diesel has been above pre-pandemic levels for the past four months.

Still, Petrobras’ oil export plans may change if the country faces a second wave of coronavirus that reduces domestic fuel consumption. Brazil has the third highest number of cases in the world, but in the past week, the rate of infections has increased at the slowest rate since May, according to data collected by Johns Hopkins University and Bloomberg News.

 

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