Rio poised for pain on low Oil price and Covid-19

摘要

IN the Brazilian state of Rio de Janeiro, where oil and gas account for almost 75% of revenues, the steep drop in crude prices and the effects of the Covid-19 pandemic are about to inflict a deep crisis on an already fragile economy. According to a recent study by Rio de Janeiro state industry federation Firjan, income from oil royalties is expected to fall 50.5% this year from a record 9 billion reais ($1.64 billion) in 2019. "Rio de Janeiro breathes oil and the municipalities in the northern part of the state are the ones that will suffer the largest impact of the fall in oil royalties' proceeds," Firjan's oil and gas strategic content co-ordinator Thiago Valejo told Upstream.