OPEC+ And The Impact On Petrobras Prices: What To Expect For Gasoline And Diesel In The Coming Months?

Written by Paulo Nogueira

Published on 04/04/2023 at 09:20

Foto: Pixabay

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The recent decision by OPEC+ to reduce oil production may directly affect Petrobras and its gasoline and diesel prices. Let’s analyze the possible impacts and how the company’s new board can deal with this situation.

OPEC+ Production Cut and Increase in International Prices

OPEC+, a cartel of major oil exporters, surprised the market by announcing production cuts. As a result, Brent crude oil prices, one of the indicators used by Petrobras to set prices, jumped more than 5 dollars a barrel, closing with gains exceeding 6%. Experts believe that this decision could raise oil prices to 100 dollars a barrel, tightening the market and refinery margins.

Challenges for Petrobras’ Pricing Policy

With rising oil prices, Petrobras’ pricing policy, currently based on the PPI (import parity price), may be tested. Petrobras’ president, Jean Paul Prates, advocates changing the policy to consider not only the PPI but also the international market, since Brazil is not self-sufficient in fuels and relies on imports.

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Impact on Gasoline and Diesel Prices

According to calculations from CBIE, Petrobras’ gasoline was 9.31% below the external market at Friday’s closing, while diesel was 4.34% above. Consulting firm StoneX calculated that, despite the price surge, there would be room for Petrobras to reduce diesel prices by 4.9%, while gasoline was at parity.

However, the OPEC+ production cut may pressure Petrobras to increase its prices. The Association of Fuel Importers (Abicom) estimated that at Friday’s closing, Petrobras’ diesel was 2% above the import parity, while gasoline was 4% below the parity.

Conclusion

The OPEC+ decision to cut oil production poses significant challenges for Petrobras and its pricing policy. The new board and the company’s board of directors will have to face a scenario of higher oil prices and seek solutions to maintain the company’s competitiveness and ensure the stability of gasoline and diesel prices in Brazil. Monitoring the international market and finding alternatives to reduce dependency on the PPI are measures that may be considered in this process.

OPEC+ And The Impact On Petrobras Prices: What To Expect For Gasoline And Diesel In The Coming Months?

OPEC+ Production Cut and Increase in International Prices

Challenges for Petrobras’ Pricing Policy

Impact on Gasoline and Diesel Prices

Conclusion

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OPEC+ And The Impact On Petrobras Prices: What To Expect For Gasoline And Diesel In The Coming Months?

OPEC+ Production Cut and Increase in International Prices

Challenges for Petrobras’ Pricing Policy

Impact on Gasoline and Diesel Prices

Conclusion

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

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