Insight Focus
- Brent Crude Oil prices have breached 115 USD/bbl.
- This is the highest they’ve been since 2014.
- The pressure is now on for Petrobras to make its first price adjustment since January 12th.
Oil prices continue to rise and, this week, Brent crude broke through 115 USD/bbl. The price lag in Brazil about the international market reaches 25%, according to data from Abicom, putting pressure on Petrobras for readjustments.
The leaders of the United States and the European Union are aware that the sanctions presented to Russia must weigh on the population’s pocket, with repe cussions on the world economy. If you want to understand these reflexes, you can’t miss MegaCast Especial – The Effects of Ukraine’s War on Global Energy Markets and Brazil.
The world’s largest oil companies are reviewing their projects in partnership with Russia. Meanwhile, some measures are being taken to avoid a lack of supply of petro eum products. The 31 member countries of the Board of Directors of the International Energy Agency have released 60 million barrels from their reserves, which total 1.5 billion barrels.
The agency also launched some measures to reduce Europe’s dependence on Russian natural gas by next year.
The Organization of Petroleum Exporting Countries and allies led by Russia (OPEC+) decided to maintain the pace of gradual production increase, with production incrasing by 400,000 barrels per day in April.
And the fear of a nuclear disaster is pacified – at least for now. The International Atomic Energy Agency stated that despite Russian advances near nuclear facilities, there is no change in radiation levels.
What else happened this week?
· A computational model of the SIN compromises planning, says Acende Brasil
· Distributed generation of solar energy reaches 14 GW and equals Itaipu’s power
· Vibra exercises option to buy 50% of Comerc Participações
· Brazilian GDP advances 4.6% in 2021
Despite the easing of the water crisis, it still has given the sector something to talk about. But without cause for fuss, because of results and production prosects.
In the case of results, the crisis weighed on AES Brasil’s financial results in the fourth quarter of 2021, however, the company continued with its matrix diversification strategy, and wind and solar generation reached 45% of the group’s Ebitda.
As for the natural gas market, the thermoelectric drive during the water crisis helped boost the sector, which grew 28.8% in 2021, to 76.043 million m³/day, according to Abegás.
Omega Energia, without hydro generation assets, celebrated the good result through its trading company and keeps an eye on the sale of carbon credits and energy self-production.
And Alupar, without winning any transmission auctions in Brazil since 2017, highlighted that it will continue to participate in the next auctions, and will bid that it consider s generating value for the company.
