Brazil’s gas demand will be supported by weather-related factors and improving macroeconomics over the coming months.
Drought is expected to particularly affect southern and eastern Brazil during the southern hemisphere summer (December-February). Forecasts suggest the chance of below-average rainfall in eastern and southern Brazil will be 40% and 45% respectively. However, rainfall in northeastern Brazil, which is prone to drought, is expected to be above average during the season. Meanwhile, Brazil’s GDP grew by 1.4% in Q3 2017 on an annual basis, and the IMF expects the country’s economy to grow by 1.5% year on year in 2018.