• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours Reality catching up with EV forecasts
  • 7 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 21 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 12 days The Federal Reserve and Money...Aspects which are not widely known

Breaking News:

U.S. Monthly Crude Oil Production Falls

Guyana’s Oil Industry Is In For A Stellar Year

Guyana’s Oil Industry Is In For A Stellar Year

Guyana’s oil boom is just…

Oil Hits 7-Week High On Strong Demand In China

Oil Hits 7-Week High On Strong Demand In China

Crude prices held steady on…

Suriname’s Oil Boom Hits A $10 Billion Snag

Suriname’s Oil Boom Hits A $10 Billion Snag

Suriname’s offshore oil basins have…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Petrobras Oil Stockpiles Are “Paradoxically” Low

Brazil’s Petrobras is one of very few oil companies with no oil storage problem, according to its chief executive.

Roberto Castello Blanco said at an event yesterday that Petrobras’s oil stockpiles are “paradoxically” very low, Reuters reports. This level of inventories is a result of strong demand for the company’s products abroad, Castello Blanco added, noting that since he took the helm of the company, it has invested heavily in its overseas trading business division, and this investment has paid off in stronger exports.

Despite strong exports, however, last month Petrobras warned its shareholders that the coronavirus pandemic could leave a scar on the global economy, specifically on consumer behaviors, which would in turn affect the oil industry as it affects demand for the commodities it produces.

ADVERTISEMENT

Petrobras reported a net loss of $9.7 billion for the first quarter of the year, from a profit of $1.98 billion for the last quarter of 2019. The loss resulted from an impairment charge of $13.4 billion, related to the company’s shallow water and deepwater assets.

"The assets that had their values adjusted are mostly oil fields in shallow and deep waters, whose investment decision was made in the past and based on more optimistic expectations for long-term prices," Petrobras said in May. "We are not surprised by its devaluation in a more challenging environment."

ADVERTISEMENT

Now, Petrobras expects Brent to average $25 a barrel this year and only rise by about $5 annually until 2025, to reach $50. This is a lot more pessimistic than most analysts’ projections for this year and lower than Brent is trading at right now, too. Most price forecasts are around the $40 a barrel mark.

Meanwhile, Petrobras continues with its divestment program: the company earlier this week said it had completed the sale of seven offshore fields and had opened the non-binding phase for another offshore asset.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News