Conditions in the international oil market are more favorable, says expert

After Petrobras announced a new reduction in the price of diesel starting this Friday (12), the former president of the National Petroleum Agency (ANP) Décio Odone said, in an interview to CNN Brazil that the international market is more favorable to Brazil at the moment.

“Conditions in the international market have become more favorable in recent days. At the end of last year, with the beginning of the end of the pandemic, and starting in February with the war between Russia and Ukraine, the oil market was very stressed. But things are changing,” he said.

The expert noted that a set of factors are responsible for the variation in oil, such as a possible recession on the way and a maintenance of the commodity’s production by the Russians, which did not fall as expected after Western sanctions, as the Eastern European country expanded its business. with China and India.

According to him, Petrobras has been right to reduce the price of fuel by observing the fluctuations of the international market and not passing on the new values ​​daily.

“It is positive that you have price changes every time period to avoid immediately transferring volatility from the international market to the domestic market. All companies do that,” he said.

Finally, Décio defended the Import Parity Policy (PPI) and said that Brazilian companies are free to set their prices according to product fluctuations.

“If there is an alignment of domestic prices with international prices, we can access imports, and Brazil needs to import diesel because we are not self-sufficient in derivatives”, he pointed out.