Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 103

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 103
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2 million barrels per day until the end of the second quarter of 2024, along with signs of more resilient global demand, also contributed to supporting prices.
 However, the recovery trajectory was limited throughout the first quarter of 2024 by concerns about the dynamics of the global economy, particularly regarding a slowdown in Chinese economic growth and the maintenance of high interest rates in the U.S. and the European Union.
 Brent price started the second quarter of 2024 upward, following the Israeli attack on the Iranian embassy in Syria, which heightened fears of an escalation of hostilities in the Middle East. After reaching its peak during the period, Brent fell back as geopolitical issues cooled down and concerns regarding the Chinese and U.S. economies and the potential impacts on demand.
 In early June, OPEC+ announced an extension of approximately 3.7 million barrels per day in production cuts until December 2025. However, the surprising decision to gradually reduce a total of 2.2 million barrels per day in voluntary cuts intensified the decline of Brent. This movement was interrupted after statements from Saudi Arabia indicated that the supply return policy could be reconsidered.
 The end of the second quarter of 2024 was marked by an increase in geopolitical tensions (Israel-Hamas, Russia-Ukraine, conflicts in the Red Sea), the beginning of the hurricane season in the Atlantic, and signs of rising demand with the beginning of summer in the Northern Hemisphere, which contributed to the price recovery trajectory.
 Brent declined in the third quarter of 2024, both year-on-year and quarter-on-quarter. Concerns about the dynamics of the global economy, particularly regarding China, negatively influenced prices.
 Brent started in the third quarter of 2024 on a high level due to the passage of Hurricane Beryl in the U.S. and geopolitical tensions in the Middle East. However, the movement lost momentum in the face of signs of weakness in Chinese oil demand, resulting in a drop in prices.
 In early August, the increase in geopolitical tensions in the Middle East and Eastern Europe, along with the partial disruption of production in Libya, contributed to a recovery in prices.
 Starting in the second half of the third quarter of 2024, demand returned to the forefront, with the worsening economic situation in China leading the IEA and OPEC to cut their projections for global oil consumption growth for 2024. The decision by OPEC+ to postpone the gradual return of its supply to December 2024 and the greater optimism regarding the U.S. economy, following an announcement of an interest rate