RIO DE JANEIRO: Petrobras shares traded in New York plunged nearly 17 per cent in premarket trading on Monday as analysts cut ratings on the stock after far-right Brazilian President Jair Bolsonaro moved to replace the state-controlled oil company’s market friendly CEO with a retired army general.
Credit Suisse, Scotiabank, Bank of America, Bradesco and XP analysts were among those who downgraded their recommendations on shares of Petroleo Brasileiro SA, as the Rio de Janeiro-based producer is known.
XP analysts said investing in Petrobras is no longer defensible after Bolsonaro’s sudden decision to replace CEO Roberto Castello Branco. “There are risks to the company’s independence and ability to continue pricing its fuel to international parity”.
— Reuters
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