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Petrobras Hits Record September S-10 Diesel Despite Coronavirus

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Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced that it produced a record output of S-10 low sulfur diesel in September, reaching 1.89 million cubic meters. This marks the fourth straight monthly record production. Moreover, last month, Petrobras recorded maximum sales when it vended 1.9 million cubic meters of S-10 diesel.

The energy sector is reeling under the adverse impact of COVID-19 that jeopardized growth in most sectors. For instance, fuel demand took a huge hit following large-scale travel constraints imposed globally. Despite such challenging market conditions, this Rio de Janeiro-based company was able to produce record fuel last month. The production of S-10 diesel has been bettered since June when 1.63 million cubic meters were produced. The level was further surpassed in July with 1.81 million cubic meters of production and in August with 1.84 million cubic meters of output.

The adverse COVID-19 impact on fuel demand will be offset by the surging sales of low-sulfur diesel, which in turn, echoes the strategic steps taken by the company to strengthen its commerce. This, in turn, also reflects Petrobras’ fruitful efforts to increase the supply of the fuel with lower sulfur content, thereby replacing the S-500 diesel.

Company Profile

Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons in addition to other energy-related activities.

Zacks Rank & Key Picks

Petrobras currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space areLaredo Petroleum Inc. (LPI - Free Report) , PDC Energy Inc. (PDCE - Free Report) and Range Resources Corporation (RRC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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