(Image: Kaype Abreu / Money Times)
Petrobras (PETR4) observes the consequences in the oil Caused by the conflict between Israel and Iran, as well as US attacks on Persian country’s nuclear facilities over the weekend, but evaluates that for now it should not change fuel prices, two company sources said.
These people mentioned that the market is quite volatile, and that the company is awaiting a change in the level of Brent oil before making any change in values.
On Monday, the Brent oil reached a new maximum of five months, to $ 81.40/barrel, before returning gains and closing down 7.18%, to $ 71.48, after Iran attaches retaliation a US base in Qatar, but not taking measures to stop the supply of oil and gas in the Ormuz Strait.
“Everyone is worried at this geopolitical moment … There is no doubt. What we have there, we are looking closely, is that the price of Brent will behave. The important thing is that with our policy we removed volatility. Removed volatility, I do not need to run, making an adjustment,” said one of the sources, as anonymity.
If Brent rises and is in the range of $ 80 a barrel for a longer period, Petrobras would have no alternative but to perform any readjustment.
Another source pointed out that “we don’t have an established level.”
“Oil is $ 75 only for political tensions, and if resolved or attenuated returns to the level $ 65,” he said.
The source recalled that the exchange rate and the price of oil are not the only parameters for Petrobras to readjust the fuels, but also the competitiveness of its own quotes against competitors.
Earlier this month, before the current conflict in the Middle East ferrates, Petrobras reduced the average price of gasoline to distributors by 5.6% in the first cutting of this fuel since October 2023.
On the occasion, Brent oil was quoted at approximately $ 65 the barrel, about $ 15 lower compared to peak of the year, seen in January.
Regarding diesel, the company performed this year three reductions in the average price of the product marketed to distributors.
More recently, with the discharge of oil, Petrobras price lag compared to imported product is almost 20% for diesel and 9% for gasoline, according to calculations by the Brazilian Association of Fuel Importers (Abicom).
Petrobras did not comment on the matter immediately.
More competitive Petrobras
For Argus Business Development Manager, Amance Boutin, the escalation of tensions between Iran, Israel and the United States continued to fuel an increase in imported diesel cargo prices, which has made Petrobras product more competitive.
“The cargo traded in the international market have recorded a significant increase in the last two weeks, closing the Import Arbitration As the product sold by Petrobras has become more competitive, ”said Boutin.
According to him, the Russian diesel loads to be delivered 15 to 45 days in up to two ports of the North and Northeast registered a rise of R $ 0.50/L between June 10 and 20, reaching R $ 3.59/L.
By comparison, the price of diesel sold by Petrobras in this place was R $ 3.17/L, according to data from Argus.
He noted that there is no risk of product shortages at the moment, due to the large volume of product available at the country’s sea terminals.
Part of diesel consumption in Brazil is served with imports.
Source: Moneytimes
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