Petrobras is pressured to lower the price of gasoline with the drop in the value of oil and ethanol gains strength with parity above 70% with the competing fuel

Oil prices evaporated to below $66 a barrel on Thursday, their lowest level since May, weighed down by concerns about weaker demand from rising COVID-19 cases, a stronger U.S. dollar and a rise in surprising increase in US gasoline inventories. In Brazil, Petrobras is putting pressure on gasoline prices to drop, which on the 12th suffered yet another 3,3% readjustment.

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After five sessions of bearish trading on ICE Europe, oil evaporates under strong pressure from sellers unloading positions from October, the driver contract.

The dollar hit a nine-month high, weighing on dollar-denominated commodities.

Both Brent and U.S. crude USA fell for six consecutive days, the longest streak of declines since a six-day low for both contracts that ended on February 28, 2020.

It loses 3,20, at US$ 66 a barrel (at 9:XNUMX am yesterday), based on concerns with the advance of the delta variant and the chaotic takeover of Afghanistan by the Taliban, clear signs that some countries are already feeling an impact on consumption, exposing the rise in inventories in the future without producers showing signs of stopping production.

“Concerns about lower demand expectations as a result of a rise in coronavirus cases across the world contributed to the drop,” said Naeem Aslam of brokerage Avatrade.

“The potential withdrawal of monetary support, the chaotic Taliban takeover of Afghanistan that threatens with another migration crisis, and concerns over the continued spread of the virus keep demand for the dollar, which in turn acts as a break in any attempt to oil price run.”

Petrobras is pressured to lower the price of gasoline with the drop in the value of oil and ethanol gains strength with parity above 70%

In this circumstance, the market's expectations of a reduction in gasoline prices fall on Petrobras, after the 3,3% increase on August 12th, and turn on the alert for ethanol.

Even if today's drop may be punctual, the fall is strong to return above US$ 70 a barrel in the next sessions, not least because the alert with the advance of covid should continue to give space for the stress of speculators with derivatives.

Hydrated ethanol came from two strong rises in the plants in the last two weeks and was already above 70% parity with the competing fuel.