4 Energy Stock Stories To Start Off the New Trading Week
Petroleo Brasileiro – Petrobras (NYSE:PBR): Closing price $15.37
The government of Brazil will permit the state-run energy major Petroleo Brasileiro SA, or Petrobras, to raise gasoline prices by October 21, according to the Estado de Sao Paulo on Monday. A price rise of around 8 percent for gasoline at the refinery gate would help reinforce Petrobras’s finances prior to the sale of Brazil’s biggest offshore oil find through new production-sharing agreements also set for the same date. Under the terms, Petrobras is required to hold a 30-percent stake and operate the field, known as Libra and calculated to hold between 8 and 12 billion barrels of recoverable oil. The company sells gasoline at around a 30-percent discount to world benchmark prices, with the government hesitant to allow higher prices lest it stoke inflation.