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Crude oil is at a 12-year low and that means it’s even cheaper than milk. The price of one gallon of West Texas Intermediate crude is equivalent to about half a gallon of Class III milk, the benchmark traded on the Chicago futures market. That’s the lowest ratio since 2004. WTI dropped to $26.19 a... Continue Reading →
Oil producer Petroleo Brasileiro SA led a drop in Brazilian stocks as commodities slumped on fears of slowing global growth and after a comment from the central bank ahead of an interest rate decision raised concerns of government interference in monetary policy. Petrobras tumbled 6.7 percent to 4.35 reais, set for the lowest closing level... Continue Reading →
01/20/2016 Rio de Janeiro, January 20, 2016 – Petróleo Brasileiro S.A. – Petrobras, concerning the news items published in the media regarding the sale of its assets in Argentina, hereby announces that it began negotiations for the sale of its interest in Petrobras Argentina. Nevertheless, until now, there are no deals signed securing the conclusion... Continue Reading →
Royal Dutch Shell Plc, which is buying BG Group Plc in the industry’s largest deal in a decade, expects fourth-quarter profit to drop at least 42 percent after the rout in crude prices deepened. Profit adjusted for one-time items and inventory changes probably shrank to $1.6 billion to $1.9 billion, Shell said Wednesday in a preliminary earnings... Continue Reading →
Brazil's central bank on Tuesday signaled that a worsening recession could force it to abandon plans to aggressively raise interest rates to battle inflation, which recently hit a 12-year high. In an unusual statement hours before the start of a two-day monetary policy meeting, central bank chief Alexandre Tombini said policymakers will take into consideration... Continue Reading →
The December 2015 downgrade of Brazil's sovereign rating to speculative grade ('BB+'/Negative Outlook) reflected a deeper economic recession, adverse fiscal developments, rising government debt burden, and increased political uncertainty that eroded Brazil's investment grade rating underpinnings, says Fitch Ratings in a new special report. The Negative Outlook highlights continued downside risks surrounding these developments. Brazil's... Continue Reading →
Brazil's securities regulator CVM is investigating 10 complaints that state-led oil company Petrobras, its auditors, and former company executives misled investors, several of which could result in judgments this year, the CVM president said. The cases, which carry administrative but not criminal penalties, come after shares in Petroleo Brasileiro SA, as Petrobras is formally known,... Continue Reading →
Brazil won’t return to growth until at least 2018 after two years of recession and one of stagnation, marking the first time in over a century that Latin America’s largest economy fails to expand for that long, the International Monetary Fund said. The IMF cut Brazil’s 2017 economic forecast to stagnation from 2.3 percent growth as... Continue Reading →
President Dilma Rousseff's opponents within her main coalition partner, the fractious Brazilian Democratic Movement Party (PMDB), are losing hope that they can impeach the leftist leader and replace her with their man, Vice President Michel Temer. A Supreme Court ruling last month that expanded the authority of the Senate, where she has a more... Continue Reading →
Bloomberg News January 18, 2016 New orders received by Chinese shipbuilders fell by nearly half last year from 2014, suggesting more consolidation is in order as the country’s appetite for raw materials wanes and shipping rates languish at multiyear lows. Shipbuilders in China received new orders amounting to 31.3 million deadweight tons last year, a... Continue Reading →
Brazil Energy Insight 