Brazil is gaining significant prominence in oil outside Asia for having few bright spots. The country’s fuel consumption has exceeded pre-virus levels and is expected to be more resilient than last year.
There is hope for the Latin giant going into next year, especially with increasing agricultural demand. Paula Jara, an analyst at consultancy Wood Mackenzie, told the media, “The rebound in fuel demand was a big surprise. When you come to think about it, Petrobras is arguably a unique case worldwide because they were able to raise fuel-making pretty quickly.”
In October, state-owned Petrobras processed 1.85 million barrels a day of crude oil, pointing to a 17 percent increase compared to the previous year. The oil giant has been hugely benefitting from the increasing demand for low-sulphur fuel oil it produces.
However, in December, demand for diesel is much lesser than in November, but is expected to pick up pace during the soybean harvest. Brazilian onshore oil producer PetroRecôncavo is exploring an initial public offering. The company is actively working with financial advisory firm Lazard on a potential listing on the Sao Paulo stock exchange, media reports said.
That said, the report also states that the company might fall back on bank financing for any capital needs that it might require to carry out acquisitions.