Brazilian state oil giant Petrobras announced it filing that it would reduce its oil production by 100,000 barrels per day from the end of March due to lower oil demand as a result of the coronavirus pandemic.
The firm will also idle some of its platforms and postpone dividend payments.
The rapid spread of coronavirus, officially known as COVID-19, has caused countries to institute lockdowns around the world.
Demand for oil has been seriously curtailed by the virus because of these shutdowns, as infrastructure and industry that need oil is running at a reduced rate or has altogether stopped.
The global economic cost of the coronavirus still remains to be counted. Some experts have already suggested that the global economy will likely face a recession in 2020 of worse proportions than the 2008 financial crisis. The airline industry being particularly hard hit as governments continue to expand travel bans.
Financial markets have been hammered by virus-related panic with the US S&P 500 Index ending a historic 11-year bull run. Central banks have moved to respond and calm markets, with the US Fed making the unprecedented move to offer an unlimited debt buying program. Brent and WTI crude futures are both down, however, around 60 percent this year so far.