Brazil's state-controlled oil producer Petrobras lifted production to a record in the third quarter, helping the country weather global energy market disruptions from the Iran war. Oil and gas output climbed 12% on year to 3.51 million barrels of oil equivalent a day, according to a filing on Wednesday.
Production rose 5.3% compared to the second quarter as Petrobras ramped up new platforms at deep-water fields, including the P-78 and P-79 units at the giant Buzios project. The floating production and storage vessel Alexandre de Gusmao reached peak production at the Mero field, and there were fewer losses from maintenance shutdowns.
The growth in production and refining has helped Latin America's largest economy limit its exposure to the global energy shock. Petrobras ran its refineries at 99% of capacity during the quarter, reaching record diesel production. Oil production of 2.8 million barrels a day puts Petrobras above its implied 2026 guidance, according to Ativa Investimentos analyst Ilan Arbetman.
Brazil has used subsidies and tax cuts to cushion consumers from soaring fuel costs, while Petrobras has kept its refineries running at high rates. But with Brent trading above $110 a barrel and Petrobras fuel prices lagging international benchmarks, pressure is building on the company to raise prices.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing