Early checks suggest the oil Petrobras found in the Morpho well, located in Brazil’s Foz do Amazonas Basin near the coast of Amapá, could be on the lighter side. A person close to the testing said the API gravity may fall in the 35 to 40 range.
If that holds up, it would sit near the lightest oils seen in Brazil so far. It might also match crude made in nearby Guyana. In general, a higher API gravity points to a lighter product. Lighter crude usually needs less refining to turn into fuels like gasoline, diesel, and jet fuel. Still, how much sulfur is present and what the chemical mix looks like will shape the final market value.
Petrobras is now running the samples at its research site in Rio de Janeiro. The last results are expected within the next few weeks. The firm has also been cleared to drill three more wells in the same area. It is working on permits for other blocks across the basin.
A new shift in demand is helping crude prices and lifting sentiment for Brazil. On Monday, Brent was above $97 a barrel and close to the top it has hit all year. Supply tightness tied to the Strait of Hormuz has slowed shipments from the Persian Gulf. That has made refiners look farther away for oil.
Chinese buyers have been taking cargoes from multiple regions. In recent weeks, they purchased crude from Brazil, Canada, Argentina, and parts of Africa. Analysts say the firmer price conditions have helped Petrobras and also smaller Brazilian companies. Petrobras stock has risen by more than 50% this year. Prio shares are up by more than 40%.
Still, some analysts urge caution. They think China’s recent purchases may be about restocking and better refining margins, not a steady bounce in demand. They also point to electric vehicle growth. There are also expectations that China’s oil use may have peaked in 2025. If that plays out, imports could ease later on.
