On a day when oil has been trading sharply down, shares of 3R Petroleum Oil and Gas (RRRP3) are following the decline. They fell 5.58% (around 3 pm), quoted at R$ 34.37. Another “junior oil”, Petro Rio (PRIO3) was also among the biggest drops in the trading session, with a drop of 4.62%, sold at R$ 21.68.
“Junior oils”, as the smaller, private companies in the oil sector are called, normally fall along with the international price of oil, according to Rodrigo Moliterno, head of equity at Veedha Investimentos. At around 2:30 pm, Brent crude futures were trading at a discount of 3.06% to $111.14 a barrel. Earlier, the fall passed 4.5%. See an analysis of these actions below and find out why Petrobras is not following this market trend.
The expectation of a temporary suspension of a federal gasoline tax in the United States is what has been pushing oil prices down today.
US President Joe Biden said that by the end of the week he will decide on implementing a temporary break on a federal gasoline tax. The idea of pausing that tax, at 18 cents a gallon, would need congressional approval.
And why is Petrobras not falling?
Petrobras shares PETR3 and PETR4, unlike private competitors, are rising. PETR3 rose 0.77%, reaching R$30.10, while PETR4 reached R$27.34, with a 1% increase.
“Petrobras is detached from the low of the sector because it already lost a lot at the beginning of the week on account of government interventions”, says Moliterno. On Monday (20), the then current president of state-owned José Mauro Coelho, resigned from his post.
What to do with 3R Petroleum shares?
Although they are falling today, 3R Petroleum shares have accumulated a rise of 9.05% in the last six months. Specialized in the revitalization of mature oil and gas fields, 3R Petroleum has a purchase rating and a target price of R$70 by Banco Safra.
BTG also recommends the purchase, but revised the target price downwards, from R$98 to R$93. “Over the weekend, many ideas began to emerge to alleviate the growing pressures on fuel prices in Brazil,” the bank, in a report to investors. “The charge of an export tax would impact our estimate for the RRRP. But this would not significantly change our optimistic structural view of the company”, published BTG.