• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 18 hours Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 3 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 8 days "The Calm Before The Storm In Oil Markets" by Tom Kool of OILPRICE and seen at YahooFinance
  • 8 days Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 1 day Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Premium Content

Petrobras Scandal Goes Far Deeper Than Previously Thought

The ongoing and seemingly widening scandal plaguing Petrobras is beginning to cause fissures in Brazil’s political system. New evidence suggests that the ruling political party may have been much more involved than once thought.

The state-owned oil giant is embroiled in a scandal over kickbacks, in which it would overpay contractors in exchange for bribes. Some of the money was also diverted to the coffers of Brazil’s Workers’ Party (PT), the political machine that has run the country for over a decade. Related: Rolls-Royce Roped Into Petrobras Corruption Scandal

A former Petrobras manager spoke at a hearing on March 11 and admitted to having taken bribes as far back as 1997. Pedro Barusco said he took over $100 million in bribes over the years, but he dropped a bombshell on the hearing when he said that the PT probably accepted twice as much.

Barusco met directly with the PT treasurer and would discuss the specifics of how the bribe scheme would work. “That makes me estimate that between $150 million and $200 million went to the PT,” he said. Related: New Petrobras CEO Facing Widespread Disapproval

The scandal has the PT in a state of crisis. Brazilian President Dilma Rousseff has had no choice but to allow an investigation to unfold, which has now ensnared 47 top political officials and allies, including the most powerful members of Congress. To make matters worse, Rousseff’s coalition partners are starting to abandon her, which will make responding to the deteriorating economy politically difficult.

Along with a stagnating economy, the high cost of living, and a horrific drought facing parts of Brazil, the public is angry at the extent of corruption that appears to reach all the way to the top of the Brazilian political system. Tens of thousands of people are expected to take to the streets this weekend to demand the resignation or impeachment of President Rousseff. Related: The Plot Thickens In Petrobras Corruption Scandal

But the President and her party are not the only casualties of the Petrobras scandal. Petrobras itself is in serious trouble. According to Galp Energia, a company that partners with Petrobras to drill for oil, the fallout from the scandal will likely delay four major offshore oil projects. That could significantly cut into Petrobras’ future production levels.

As debt piles up and the corruption probe digs deeper, Petrobras is looking weaker by the day. In late February, Moody’s downgraded the oil giant to “junk” status.

By James Burgess for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News