Brazil’s gas demand faces further headwinds in 2017 because of persistently mild weather and the country’s weak economy.
Brazil’s winter (June-August) has been mild so far this year, and weather forecasts suggest a 40% chance of above-average temperatures in the country between July and September. Preliminary forecasts suggest rainfall will be average in Brazil during December, which marks the start of summer in the southern hemisphere. This will further dampen the country’s gas-to-power demand in 2017.
Meanwhile, political turmoil related to corruption allegations surrounding Brazilian President Michel...