Brazil crude production falls 1.4% in May, exports 21% down

Quantum Commodity Intelligence – Brazil's crude oil production dipped in May to 2.932 million barrels per day (bpd), a drop of 1.4% from April, while output for January to May was down 3.4% from the same period last year, according to data from Brazilian oil regulator ANP.

The country's crude production remains historically high, however, after making a gain of 14% between 2018 and 2020 as new production came online and demand last year for its medium sweet grades from fields such as Lula soared, particularly from the Asian market.

Exports were also down 20.8% on the month to 1.221 bpd in May, making it the lowest monthly figure since January.

Year-to-date exports were 10.7% lower from 2020 at an average of 1.326 million bpd, but still significantly up from the same period in 2019.

Imports meanwhile were 0.262 million bpd in May, up 11.4% on the month.

Moving to domestic demand for products, gasoline deliveries gained 8.8% from April to 0.625 million bpd and stood at just 1.9% below May 2019.

Diesel deliveries though dropped 4.6% on the month to 1.018 million bpd but were 4.6% above the pre-pandemic equivalent for May 2019.

Jet demand bounced back slightly from April but was still at the second-lowest level in 8 months, at 58,864 barrels per day.

Brazil has been battling its second wave of Covid-19 infections – with infections reported as the second-highest rate in the world – while President Bolsonaro has refused to introduce fresh movement restrictions to curb the spread.

Toll road data from Atlantia has indicated motor travel in Brazil has dipped in the second half of June with average usage of its toll roads in the country at 6.8% below the 2019 equivalent, after posting seven consecutive weeks of toll road travel above 2019 levels.

Google mobility data also showed personal journeys at 6% below a January 2020 baseline in the second half of June, compared to 3.6% below in the first half of June, but this still painted a positive picture compared to the May average of 10% below.