Brazil imported 15% less oil from Arab countries in the first half of 2020 compared to the same period last year as an effect of social isolation measures, and a consequent reduction in mobility due to the pandemic caused by the new coronavirus. On the other hand, sales of fertilizers imported from these countries grew. Between January and May, exports of Arab oil (US$690 million) was surpassed by that of fertilizers (US $ 778 million). A large portion of fertilizer imports has been fueled by the demand generated from Brazil´s agriculture industry since even in the pandemic the demand for food does not fall. In addition, the devaluation of the real against the dollar benefits agricultural exports, thus leading to the increasing consumption of fertilizers. See the chart below for Brazilian fertilizer imports in the first half of 2020. In addition to fertilizer imports continuing to have good prospects for the coming months, specialists in the fuel sector are also optimistic. “Although the pandemic still represents a significant impact on fuel demand, there are perspectives for improvements in the coming months. In June, it was possible to see a recovery in the processing volumes of national refineries to normal levels. We estimate that the impact of the pandemic on the refining segment will be less than on the demand for fuels and that in 2021 it will be possible to observe a return of oil processing in refineries to 2019 levels”, concludes the director of Studies of Petroleum, Gas and Biofuels from the Energy Research Company (EPE), Heloisa Borges Bastos Esteves.
Source: ANBA