• 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 ?
  • 7 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 4 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 5 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 22 hours Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 3 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.

Brazil Considers Full Privatization Of Oil Giant Petrobras

The new energy minister of Brazil will study the option of privatizing state oil giant Petrobras, he said in his first news conference.

"I request the beginning of the studies pending the proposal of the legislative changes necessary for the Petrobras' privatization," Adolfo Sachsida said, as quoted by Reuters.

The idea of privatizing Brazil's state oil company is not new. In 2019, there were reports that the Bolsonaro government was looking to take the company fully private by the end of 2022, which is also the end of its term.

"There are big guys thinking they won't be privatized, but we will get there," Economy Minister Paulo Guedes said at the time.
Petrobras is currently on a collision course with Brazil's president, Jair Bolsonaro, after it booked higher profits thanks to the international oil price rally and soon after raised diesel prices for the domestic market, again in line with global trends in the industry.

Bolsonaro criticized the state oil company for its "abusive" profit, according to a Bloomberg report, and said, "I ask Petrobras to be responsible and not increase diesel prices."

The state oil company booked a profit of $9 billion for the first quarter, which was as much as 40 times higher than its net result for the first quarter of 2021.

Petrobras regularly becomes the target of government criticism when it raises domestic prices for its product, which it this time did on Monday, raising diesel prices by 9 percent.

Bloomberg noted in its report that there is a widely held belief that as a state-owned company, the oil major should work to shield Brazilians from the effects of global market trends when it comes to setting local fuel prices.

Yet if the company is privatized, it will be putting the interests of its shareholders over the interests of its consumers, and that could lead to higher prices as well if international oil prices remain high.

By Irina Slav for Oilprice.com

More Top Reads from Oilprice.com:



Join the discussion | 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