Demand for fuel in Brazil has dropped between 50 and 60 percent since the beginning of the coronavirus outbreak, according to Petrobras CEO Roberto Castello Branco (as we reported this week, traffic congestion fell by 72 percent in the São Paulo metropolitan area). When it comes to aviation fuel, he says the drop is over 80 percent — as flights have been cut by up to 90 percent in some of Brazil’s busiest airports.
“It’s only a shock, and every shock is temporary,” Mr. Castello Branco said at an online event promoted by the investment bank Itaú BBA. “We just do not know how long it is going to last.”In response, Petrobras has decided to produce 200,000 fewer barrels a day to avoid oversupply. The company is considering suspending production in the Bacia de Campos and the pre-salt oil layer.
Last month, The Brazilian Report showed how the 2020 oil crisis, combined with the pandemic, might affect Brazil.