Brazilian road fuel production in May surpasses 2019 levels

Quantum Commodity Intelligence - Brazilian production of gasoline and diesel fuels during May jumped nearly 10% from the prior month to surpass May 2019 levels, indicating demand is recovering on easing of Covid-19 restrictions, data from Brazilian oil regulator ANP published late Monday showed.

Combined production for the two road fuels came in at 35.54 million barrels, its highest monthly figure so far for 2021 and beating the 34.53 million barrels produced during the same month in 2019, the data showed.

May diesel production came in at 22.34 million barrels, up 5.4% on the month and flat to 2019 levels, while gasoline production surged 18% on the month to 13.20 million – its highest level since 2018.

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.

While road fuel production jumped, jet fuel production slumped 5.9% on the month to just over 991,000 barrels – its lowest monthly level since June last year and below the 3.55 million produced during May 2019.

Naphtha production in May came in at 2.35 million barrels, down 2.6% on the month and 17.2% below 2019 production, while LPG production was reported at 3.27 million, down 2.4% on the month and 16.0% from 2019.

Alongside the output of refined products, ANP reported that crude oil intake by Brazil's refining sector jumped nearly 16% on the month to 51.15 million barrels, below the 53.3 million barrels which were processed in May 2019.

Of that volume, 10.11 million barrels were imported, the highest level for the month of May since 2014 and up 64% from the processed crude oil imports in May 2019.

Cumulative refined oil production for the first five months of the year hit 258.40 million barrels, up 1.8% on the same period in 2020, and marginally below the 259.75 million which were produced during the first five months of 2019.

The data is a first glimpse into Brazil's oil and natural gas production and consumption figures for the month of May, with more production and trade data to be updated over the next days.