- Brazilian oil workers are set to move ahead with a planned 72-hour strike, despite being declared illegal by the country's top court last yesterday.
- Petrobras (NYSE:PBR) says any such disruption will not have an immediate major impact on its production or overall operations, but another strike would add to the major disruptions caused by the truckers strike over the past 10 days.
- While the truckers protests are easing, officials say it will take days to restore supply lines disrupted by the 1K-plus roadblocks on key highways across Brazil.
- Meanwhile, Reuters reports that Brazil’s Pres. Temer may scrap the market-based pricing mechanism used by PBR and revert to selling all fuel below costs.
- The market-based policy worked well when oil prices held steady at $40-$50/bbl and the Brazilian currency remained stable against the dollar, but surging oil prices and weakening currency has caused a re-evaluation, according to the report.
- ETFs: EWZ, BRZU, BRF, EWZS, BZQ-OLD, BRAQ, UBR, BRAZ, DBBR, FBZ
- Now read: Dollar And Yen Surge
Original article