Brazil’s oil sector trends and recent developments.

The Covid-19 pandemic had a considerable impact on Brazilian oil and gas demand, affecting investments in the sector. However, the economy has been recovering, with demand coming very close to its previous peaks, even with air transport and mobility still lagging.

Oil and fuel prices have increased considerably in the first half of 2022, mainly due to the ongoing conflict between Russia and Ukraine, but also because of a stronger than forecast global demand growth. Domestically, retail prices also rose significantly. Ultra-low Sulphur diesel oil (ULSD) went through the sharpest increase, with 42%, while gasoline rose 8%, and liquefied petroleum gas (LPG) rose 10%, on average.

The oil sector's mid- and downstream is also undergoing changes. Petrobras' refinery divestments were delayed by the pandemic, but have overcome all the necessary hurdles, resulting in the completion of the sale of four out of eight refineries. Once completed, these divestments are expected to stimulate other market participants to invest in the modernization of these refineries, and also in new maritime terminals, pipelines and railways. This investment is needed to support Brazil's growing fuel demand, as per capita income increases. Players have started committing resources to infrastructure, and even more investments are expected over the next few years.

The natural gas sector is in the midst of a structural transformation and evolved considerably after the promulgation of the New Gas Law. Companies started to become operators and to diversify their activities and investments. This is mainly to progress in the discussions about third-party access to essential facilities, which will stimulate competition and more investments.

Brazilian Oil & Gas Report 2021/2022


Notícias Relacionadas

EPE publishes April 2024 Brazil’s Short-Term Fuel Market Outlook

19/04/2024 - Brazilian liquid fuel demand will grow in 2024. EPE forecasts an increment of 1.3%, or 2 billion liters, for 2024, after three consecutive years growing more than 4% per year, which represents an average annual increase of 6.4 billion liters between 2021 and 2023.

EPE publishes February 2024 Brazil’s Short-Term Fuel Market Outlook

26/02/2024 - Brazilian liquid fuel demand will grow in 2024. EPE forecasts an increment of 0.8%, or 1.2 billion liters, for 2024, after three consecutive years growing more than 4% per year

EPE and IEA publish the Atlas of Energy Efficiency Brazil 2023

28/12/2023 - The main objective of the Atlas of Energy Efficiency Brazil 2023 is to monitor the progress of energy efficiency in Brazil through an analysis of indicators, with data up to the year 2022.

Brazilian Oil & Gas Report 2022/2023

26/12/2023 - The latter part of 2022 was marked by significant price volatility, driven by a combination of external and internal factors. Nevertheless, fuel demand continued to expand, aligned with resumption of economic growth as the economy normalized after Covid-19 disruptions. Exploration and Production (E&P) activities had a surge in investments, caused by both regulatory and economic incentives.

EPE publishes December 2023 Brazil’s Short-Term Fuel Market Outlook

21/12/2023 - Brazilian liquid fuel demand continues to grow at an accelerated pace, having increased by more than 5% in the last twelve months. Diesel, gasoline and hydrous ethanol are the main drivers of this high.