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Petroleum industry

Petrobras Faces Deficit Due to Rising Domestic Demand for Oil Derivatives

Strategic Insights

— 1 min read

Brazil's largest oil company, Petrobras, is likely to record a deficit in 2011 due to increased domestic demand for oil derivatives, particularly gasoline. According to Paulo Roberto Costa, Petrobras' Supply and Refining director, the company has already recorded a deficit of 1.1 billion reais (approximately US$ ) in the first half of the year. The growing demand for gasoline, caused by a hot domestic market and more attractive prices at gas stations, has led Petrobras to import more diesel and gasoline to meet the country's refining capacity and domestic consumption needs.

Key Takeaways:

  • Petrobras is expected to record a deficit in 2011 due to rising domestic demand for oil derivatives.
  • The company has already recorded a deficit of 1.1 billion reais (approximately US$ ) in the first half of the year.
  • The domestic market is growing, with a 5-10% discrepancy between refining capacity and domestic consumption rates until 2015.
  • Petrobras will import an additional 650,000 barrels of gasoline by the end of the month to ensure supply meets demand.
  • No new refineries have been built in Brazil in the last 32 years, resulting in a reliance on imports.
  • The company's refining capacity is expected to remain out of phase with domestic consumption until 2015.
  • The deficit is expected to continue until 2015 due to growing demand for gasoline.
  • Petrobras has guaranteed that there will be no shortage of gasoline supplies for Brazilian consumers.

Statistics:

  • Petrobras has recorded a deficit of 1.1 billion reais (approximately US$ ) in the first half of 2011.
  • The company expects to import an additional 650,000 barrels of gasoline by the end of the month.
  • Brazil's domestic market demand for oil derivatives, particularly gasoline, is expected to grow until 2015, with a 5-10% discrepancy between refining capacity and domestic consumption rates.
  • No new refineries have been built in Brazil in the last 32 years, resulting in a reliance on imports.

Sources:

  • ANBA (newspaper article, without date)

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