Petrobras suffers declines with Lira and Campos Neto questioning gasoline prices By Investing.com


© Reuters

By Ana Beatriz Bartolo

Investing.com – The shares of Petrobras (SA:) operate in decline this afternoon, with a decline of 1.30%, at R$ 25.89, around 4:23 pm. The market reacts negatively to the possibility of intervention in fuel prices, according to Bruno Madruga, Head of Variable Income at Monte Bravo.

The malaise began last night (13), when the president of the Chamber, Deputy Arthur Lira (PP-AL), questioned the weight of the company’s prices in people’s pockets and said that the state-owned company should be reminded that “ Brazilians are its shareholders”. The comment was made after announcing the participation of General Joaquim Silva e Luna, president of Petrobras, in the public hearing in the Chamber that took place today (14).

Bruno explains that the speech was interpreted as an attempt to pressure the intervention of fuel prices, something that “the market does not accept”. “After Lira’s comment, shares in the United States fell by around 2.5% in the after market, so today we already had the expectation of an opening in the negative of Petrobras”, explains the analyst.

The president of the Central Bank, Roberto Campos Neto, also took part in the discussion about fuel at an event held by BTG Pactual (SA:). During his lecture, Campos Neto said that Petrobras passes prices on “much faster than most other countries”, relating the issue to the inflationary pressure caused by energy.

Silva e Luna argued at the hearing in the Chamber earlier, that President Jair Bolsonaro has never directly intervened in the company since the general took command of the state-owned company and that his actions are only carried out by means already provided for by law. According to Bruno, the comment calmed the market, but investors are still waiting for other political moves.

Risk Statement: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the current market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.