Brazilian multinational oil giant Petrobras saw its crude oil production decline in the second quarter of 2020, compared to the previous quarter due to the novel coronavirus (COVID-19) hampering oil demand and crude prices.
The company's crude production averaged 2.24 million barrels per day (bpd) in the April-June period of this year -- down 3.4% from the average of 2.32 million bpd of crude output recorded in January-March period of this year.
The firm's total production of oil and natural gas averaged 2.8 million barrels of oil equivalent (boed) per day in the second quarter of 2020, which marked a decline of 3.8% from 2.91 million boed per day in the first quarter of 2020.
'Petrobras faced, in the second quarter of this year, an unprecedented crisis in the industry, with a sharp drop in the value of Brent [oil price], a sharp decrease in demand and a surplus of products in the market,' the company said in a statement on Tuesday.
With COVID-19 causing a steep decline in global oil demand and oversupply in the market, the price of Brent crude plummeted to below $16 per barrel in April, from $45 a barrel in March, recording a 64.4% decline.
'In refining, production was significantly impacted by reduced demand, mainly in April, when the utilization factor (FUT) reached 59%,' the statement read.
'The gradual recovery of domestic consumption and the export of bunker and fuel oil allowed the refinery's FUT to return to pre-pandemic levels, reaching 74% and 78%, in May and June, respectively,' it added.
By Ovunc Kutlu