Petrobras (PBR) Pops as Brazilian Energy Minister Plans Higher Fuel Prices
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Petroleo Brasileiro S.A. (Petrobras) (NYSE: PBR) shares are popping higher Wednesday following word that fuel prices are expected to increase in its home country.
Brazilian Energy Minister Edison Lobão said Brazil needs to raise gas prices, hinting that an increase might happen in 2012, though no specific date was given.
Petrobras, a state-controlled energy company, rose gasoline and diesel prices recently to offset some refining costs as well as raise funds to boost investment in domestic oil production.
Last Friday, Petrobras reported its first quarterly loss in 13 years, citing fuel imports as the main catalyst. The company typically imports crude at international prices and then sells it domestically at a loss due to pricing legislation. Petrobras noted that factors influencing the loss are likely to stem over the coming quarters.
Shares are now flattening out, but Petrobras stock is still up nearly five percent on Wednesday's trading session.
Brazilian Energy Minister Edison Lobão said Brazil needs to raise gas prices, hinting that an increase might happen in 2012, though no specific date was given.
Petrobras, a state-controlled energy company, rose gasoline and diesel prices recently to offset some refining costs as well as raise funds to boost investment in domestic oil production.
Last Friday, Petrobras reported its first quarterly loss in 13 years, citing fuel imports as the main catalyst. The company typically imports crude at international prices and then sells it domestically at a loss due to pricing legislation. Petrobras noted that factors influencing the loss are likely to stem over the coming quarters.
Shares are now flattening out, but Petrobras stock is still up nearly five percent on Wednesday's trading session.
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