Bunker Fuel28 Apr 2020 15:04
Some macro news I found on ENQ board;
Brazilian state-run oil firm Petrobras has reversed most of its previously announced production cuts due to higher-than-expected demand for some fuels, it said on Monday, a surprising turnaround that may be tied to an aggressive bet on bunker fuel.
In a Monday securities filing with first-quarter production figures, Petroleo Brasileiro SA (PETR4.SA), as the firm is formally known, noted that it initially decided to cut April oil production to 2.07 million barrels per day (bpd). But it said it decided later in the month to increase production to 2.26 million bpd. It also increased utilization rates at its refineries to 79% after cutting them to 60%.
First-quarter production of bunker and other fuel oils by Petrobras rose 18.5% from the previous quarter and almost 50% from the same period a year before. New international regulations that came into force at the beginning of the year lowered the maximum allowed sulfur content of bunker fuels. Much of the oil produced by Petrobras is naturally low in sulfur, making it ideal for bunker production.
Executives have repeatedly said demand for bunker fuel appears more resilient during the novel coronavirus pandemic than demand for other products, such as gasoline and jet fuel."