Petrobras Cuts Derivative Imports Amid Conflict-Driven Price Hikes

Petrobras has pushed its refineries to their limits in an effort to meet domestic demand for oil derivatives amid high prices caused by the US-Israel conflict with Iran. The state-run firm cut imports of these products to just 67,000 barrels per day in the second quarter, a significant decrease from the previous year's level.

Diesel imports fell by 85% and liquefied natural gas (LNG) imports dropped by 42%, making this the quarter with the lowest volume of derivative imports on record. Petrobras' refineries operated at an average capacity of 102.5% in April and May, leading to a reduced need for imports.

The firm's production has increased, however, with local oil and LNG output rising by about 15% to 2.69 million barrels per day. Total output, which includes natural gas and operations abroad, grew by 14% to 3.34 million barrels of oil equivalent per day.