Petrobras assesses impact of invasion of Ukraine for oil before changing prices

Petrobras assesses impact of invasion of Ukraine for oil before changing prices

Petrobras will assess the impacts of the high volatility of oil prices on the international market, after the Russian attack on Ukraine, before taking any decision on prices, said the executive director of Marketing and Logistics, Cláudio Mastella.

“I don’t have an easy or simple answer at this moment, the fact is that we should continue watching the market for a while longer and observing in parallel the evolution of the exchange rate in Brazil”, said the executive.

He commented that a devaluation of the dollar against the real has allowed the company to keep, since January 12, the average values ​​of gasoline and diesel unchanged in its refineries, despite an advance in the prices of a barrel of oil abroad.

“Regarding the lag… due to various geopolitical tensions, we have observed an increase in prices in recent weeks and, at the same time, the dollar has been devaluing. With these two movements, in contrast, we were able to maintain our prices,” he said.

Brent crude topped $100 a barrel for the first time since 2014 on Thursday after Russia surged forward in Ukraine.

“At the current moment, today in particular, it naturally brought much higher volatility to the markets, which we are still observing”, he pondered.

Mastella also stressed that the company continues to practice prices that we believe are competitive in balance with the international market, but avoiding passing on volatilities.

“This balance between domestic price and international price is what guarantees service to the domestic market on an economic basis, without the risk of shortages, by the various actors”, he stressed.

On Wednesday (23), Petrobras released its results for the 4th quarter of 2021.

Source: CNN Brasil