Oil Rises Again: Brent Crude Surpasses $120 and Pressures Petrobras to Adjust Fuel Prices in Brazil

The Increase In The Price Of Oil Barrel Is Already The Highest In The Last 2 Months And New Sanctions On Russia And The End Of Restrictions In China May Be Responsible

On last Monday, May 30, 2022, the international price of the Brent oil barrel surpassed US$ 120. This value is considered the highest in the last 2 months and one of the highest in the last 4 years. Experts point out that this might be the result of new sanctions imposed on Russia due to the war against Ukraine and the end of coronavirus restrictions in Shanghai, China. This increase may pressure Petrobras to raise fuel prices in Brazil and escalate tensions.

The scenario is still expected to worsen, according to experts, as new sanctions may happen against Russia and oil consumption by China may significantly increase after the lifting of restrictions in Shanghai due to the coronavirus.

Learn More About This Increase In The Price Of The Oil Barrel With The Video Below

The Price Of The Brent Oil Barrel Has Been Increasing Monthly And Now Reaches One Of The Highest Values In 4 Years

There are known types of oil worldwide, according to their origin and characteristics. For example, Dubai Crude is a heavier type of oil produced in the Middle East. However, one of the most widespread types today is the Brent, produced in the North Sea of Europe and Asia with lighter characteristics.

It is estimated that the price of oil for July will reach US$ 121.67 per barrel, and the August contract is also expected to be higher compared to last year, with the price forecast set at US$ 116.84 at the day’s peak.

However, what is seen so far is the constant increase in the price of the oil barrel. In 2020, there was a significant drop in value, which may have been due to lockdown and restrictions on people’s movement due to the coronavirus, reducing oil consumption.

However, with the reestablishment of the economy in the following years, fuel consumption began to gradually increase, and now the price of the barrel is the highest in the last 4 years, as shown in the graph below.

The European Union Is Expected To Meet In The Coming Days To Organize A New Package Of Sanctions Against Russia

The famous saying “nothing is so bad that it can’t get worse” has never made more sense than now. Members of the European Union will meet at the beginning of next week to discuss a new package of sanctions against Russia. This occurs due to the lack of agreement between the country and Ukraine for a ceasefire in favor of civilian lives.

Therefore, the trade of Russian oil will become even more difficult, which may further increase the price of the barrel. Additionally, the easing of movement restrictions in Shanghai, China, will contribute to an increase in local oil consumption, which may also raise the price.

Petrobras May Be Pressured By The Increase In The Price Of The Oil Barrel At The Global Level

The Brent oil is essential and regarded as a reference for Petrobras in Brazil. This increase may impact the need for fuel adjustment in the coming months. This is compounded by a potential diesel shortage, which will exert significant pressure on the state-owned company and may hit consumers’ pockets. However, for now, there is no announcement of new scheduled adjustments.