Weather-related gas demand in South America is expected to disappoint during the southern hemisphere summer.
Brazil is forecast to see average rainfall during the summer, which runs between December and February. This in turn will support hydropower generation in the country and curtail its gas-to-power requirements. Brazil has come out of a prolonged recession, but its economic growth remains anaemic and uneven. Brazil’s economy expanded by around 1% on a quarterly basis in Q1 2017 following eight consecutive quarters of contraction. However, the economy registered a growth of just 0.2% quarter on quarter in Q2 2017. The IMF has forecast Brazil’s GDP will grow by only 0.3% on an annual basis in 2017.