Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) falls sharply
During Thursday’s trading session, of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) shares, a semi-public oil giant of Brail, closed at $12.25 after facing a sharp decline by 6.13%. Before closing, the stock reached a high of $12.95, after having opened at $12.88. During the trading session on July 5th, more than 41.08 million shares were traded which is higher comparing with the average volume of 18.82 million shares during the past 90 trading sessions.
Currently, Petroleo Brasileiro Petrobras SA is going through its toughest days in the company’s history. The stock price of the company has fallen down by about 20% since the month of May. The reason behind this fall is Brazil’s destabilized economy. The country is struggling to keep’s velocity against US dollar. Petroleo Brasileiro Petrobras SA is one among the indebted companies worldwide but most of debt owed by it is denominated in dollars. Through the sales of imported gasoline and diesel, Brasileiro Petrobras SA is incurring loss in their domestic market at present.
Despite this, the conditions are expected to improve as the unearthing of reserves from the immense oil reserves of Brazil has provided an extra 100 billion barrels of reserves which are equivalent to oil from the entire reserves of Brazil. This fresh development has made Petroleo Brasileiro Petrobras SA one among the best pure-play stocks to be bought. The company has taken up a hue investment for the exploration and development of the enormous oil fields. The company has set a target production of 1 million oil barrels per day by the year 2016.
Petroleo Brasileiro Petrobras SA has bought its LNG shipment opening from Sonangol, Angola to meet up the domestic demands of fuel. The company’s decision to make agreements with Sonangol with regards to import would be leading to the augmentation in meeting up domestic demands and its decision to buy LNG.