Oil Prices Hit Lowest Level in 5 Months, Affecting Petrobras: Fuel Market Decline Impacts Oil Company's Stocks.

Oil Prices Hit Lowest Level in 5 Months, Affecting Petrobras: Fuel Market Decline Impacts Oil Company’s Stocks.

Written by Paulo Nogueira

Published on 12/12/2023 at 13:24

O petróleo Brent atingiu nesta terça (12) o menor nível em cinco meses, cotado a menos de US$ 74. No dia, a queda chegou a mais de 3%, afetando Petrobras – Todos os direitos: MoneyTimes

Be the first to react!

“Brent Oil Falls Below US$ 74, Lowest Level in 5 Months. 3% Drop Affects Petrobras.”

The oil market faces a scenario of uncertainties regarding new OPEC+ cuts and a projected imbalance between supply and demand in 2024, affecting the quote of oil. Brent oil reached its lowest level in five months on Tuesday (12), priced at less than US$ 74, impacting companies in the sector, such as Petrobras (PETR3;PETR4) and other oil companies listed on the stock exchange. The commodity, which nearly hit US$ 100 in September, is today affected by a forecast of excess oil supply next year, alongside a projected decline in fuel demand. Even the production cuts by OPEC+ have not been sufficient so far to alleviate the drop in barrel prices. According to Jim Ritterbusch, president of Ritterbusch and Associates LLC, in an interview with Reuters, the countries participating in the group have seen their sales revenues decrease with the lower volumes produced, which has generated skepticism in the market about announcements of new cuts.

The falling Brent barrel price pulls down the shares of oil companies, including the blue chip Petrobras. The company’s preferred shares were down 0.90% on Tuesday afternoon and 4.57% for the month. With the uncertain scenario regarding oil and the possible imbalance between supply and demand in 2024, oil companies are facing a challenging period. Prio (PRIO3) and 3R Petroleum (RRRP3) fell 1.07% and 2.26%, respectively. Petrorecôncavo (RECV3) extended its drop to 2.35%. The fuel distributor Vibra (VBBR3) was down 2.86%.

Oil: Forecast of Demand Deceleration Amid Projection of Excess Supply

After recent projections of decline in fuel demand, the oil market has faced concerns about excess supply. The forecasts indicate a possible imbalance between supply and demand, which has led major producers to consider cuts in barrel production.

ARTICLE CONTINUES BELOW

See also

Oil, considered an important commodity, has been affected by forecasts of declining fuel demand, mainly due to the impacts of the pandemic and global economic uncertainties. Analysts warn that excess supply may create additional pressure on oil prices, hindering market recovery.

The projection of imbalance between supply and demand has led producing countries to consider measures to control production and avoid a situation of excess oil in the market. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, such as Russia, are closely monitoring the situation and discussing the possibility of new production cuts.

Faced with uncertainty and projections of declining fuel demand, the oil market has experienced volatility, with prices fluctuating in response to news and economic data. It is expected that oil production will continue to be a central theme in discussions among producing countries in the coming months as they seek to balance supply with demand and stabilize commodity prices.

Source: MoneyTimes

Oil Prices Hit Lowest Level in 5 Months, Affecting Petrobras: Fuel Market Decline Impacts Oil Company’s Stocks.

“Brent Oil Falls Below US$ 74, Lowest Level in 5 Months. 3% Drop Affects Petrobras.”

Oil: Forecast of Demand Deceleration Amid Projection of Excess Supply

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

Cristiano Ronaldo builds a billion-dollar mansion in Portugal with 54,000 square feet, a 3-acre plot facing the Atlantic, private spa, indoor and outdoor pools, and an estimated value of an impressive R$ 385 million.

Larger than the Toyota Hilux and with a towing capacity of 3.5 tons, the new MG U9 2026 features a 2.5 turbodiesel engine, 520 Nm, 4×4 traction with three locks, and an almost full-size build.

Supermarket giant buys 12 stores, Distribution Center, and two chains and accelerates expansion

Brazil erects a digital wall along 16,886 km of borders with 10 countries, using sensors, radars, military communications, and the Army’s decision-making system to protect one of the largest land stretches on the planet and showcase the technological strength of national defense.

For the first time in history, a submarine cable will descend to four thousand meters deep under the ice of the North Pole to ensure that the internet between Europe and Asia no longer depends on conflict zones in the Middle East.

While the world discusses geopolitics, China is quietly closing a deal with its Kazakh neighbor to secure grain supplies during any global food crisis, with more than 3,600 Kazakh companies already able to export directly to the Chinese market.

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.

Oil Prices Hit Lowest Level in 5 Months, Affecting Petrobras: Fuel Market Decline Impacts Oil Company’s Stocks.

“Brent Oil Falls Below US$ 74, Lowest Level in 5 Months. 3% Drop Affects Petrobras.”

Oil: Forecast of Demand Deceleration Amid Projection of Excess Supply

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

Cristiano Ronaldo builds a billion-dollar mansion in Portugal with 54,000 square feet, a 3-acre plot facing the Atlantic, private spa, indoor and outdoor pools, and an estimated value of an impressive R$ 385 million.

Larger than the Toyota Hilux and with a towing capacity of 3.5 tons, the new MG U9 2026 features a 2.5 turbodiesel engine, 520 Nm, 4×4 traction with three locks, and an almost full-size build.

Farmer drills well in Ceará in search of water, accidentally finds crude oil and sees million-dollar discovery hindered by a rule that completely changes the future of the site.

Family finds oil on a 49-hectare site in Ceará, but exploration has no timeline or guarantee of happening

When drilling an artesian well, a farmer wanted water but found oil: ANP confirms that the dark liquid found by a farmer on a site in Ceará is crude oil.

European stocks rise with oil drop after Trump’s remarks on Iran as investors monitor global tension

While the Brazil-Peru rail has been under study for 11 years, China-Brazil unlock the $18.5 billion bi-oceanic corridor Manaus-Chancay to challenge the Panama Canal

Supermarket giant buys 12 stores, Distribution Center, and two chains and accelerates expansion

Brazil erects a digital wall along 16,886 km of borders with 10 countries, using sensors, radars, military communications, and the Army’s decision-making system to protect one of the largest land stretches on the planet and showcase the technological strength of national defense.

For the first time in history, a submarine cable will descend to four thousand meters deep under the ice of the North Pole to ensure that the internet between Europe and Asia no longer depends on conflict zones in the Middle East.

While the world discusses geopolitics, China is quietly closing a deal with its Kazakh neighbor to secure grain supplies during any global food crisis, with more than 3,600 Kazakh companies already able to export directly to the Chinese market.

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.