China shows signs of recovery in crude oil consumption

According to wood mackenzie, China, which is Petrobras' main export destination, has been showing signs of recovery in crude oil consumption. After the crisis triggered by social isolation measures against the new coronavirus, Chinese demand for the commodity is expected to rise 16.3% in the second quarter. 

Chinese consumption is expected to return to 13 million barrels per day, but still remains 2.5% below the levels of the second quarter of 2019. The most effective recovery is expected only for the second half of the year, with a 2.3% increase in Chinese

demand. In relation to Petrobras, China accounted for 48% of the company's exports in the first quarter, 20 percentage points less than the Chinese share of the Brazilian state-owned company's external sales in the fourth quarter of 2019. There was a 12% reduction in the oil company's exports to the Asian country on the same basis of comparison, to 386,000 barrels per

day. For Wood Mackenzie, the recovery trajectory of Chinese demand will depend on how the pandemic will behave. "Even if China avoids a second wave of infections, as long as the pandemic remains around the world, the country will maintain strict border controls, restricting aviation. In addition, the current global economic crisis is likely to have an adverse impact on China's exports and investments, negatively putting pressure on industrial and commercial transportation activity," researcher Yuwei Pei said in a report on the subject.

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