Coronavirus company news summary - Brazil’s crude processing rises 17% - W&T Offshore raises Q4 output guidance
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Coronavirus company news summary – Brazil’s crude processing rises 17% – W&T Offshore raises Q4 output guidance

10 Dec 2020

10 December

US-based petroleum company PBF Energy shut down operations of the cat cracker and alkylation units at its Paulsboro refinery in New Jersey, which are part of the company’s East Coast reconfiguration project. The refinery will only produce partially refined products as gasoline refining margins have been down since the onset of Covid-19 pandemic and jet fuel demand slumped by 50% compared with 2019 levels.

The total crude oil processed by Brazilian government-owned Petrobras in October stood at 1.85bpd, a 17% increase from the same period in 2019 despite the slump in global oil demand due to the coronavirus pandemic, especially in US and Europe. Demand in the Asian oil market, however, recovered as activity in most of the countries returned to normal after lifting of Covid-19 lockdown restrictions.

Canadian Natural Resources is planning to increase natural gas production by 11% in 2021, while capital spending is projected to reach $2.51bn, higher than the 2020 estimate of $2.1bn. The company is bullish on gas prices and demand bouncing back from lows witnessed during the Covid-19 pandemic. Oil companies across Canada are restarting production after they were forced to shut operations as the ongoing pandemic ravaged fuel demand.

US-based W&T Offshore increased its production guidance for the fourth quarter of the year, as it resumed production after closing down operations due to the storm in Gulf of Mexico. The company’s Q4 output is projected to reach around 34,700 and 36,000bpd, comprising 34% oil, 11% natural gas liquids and the remaining natural gas. W&T managed to maintain output at optimum level in 2020 despite Covid-19 pandemic and a slew of disruptions caused by hurricanes.