Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) shares down by 6.13%
In the Friday’s trading session, shares of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) closed at $12.25 after falling sharply by 6.13%. The stock opened at $12.88 and reached a high of $12.95 before closing at the specified level. Over 41.08 million shares were traded in the trading session of July 5 which is very high as compared with average volume of 18.82 million shares in last 90 trading sessions.
Semi public oil giant of Brail, Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), is presently going through the toughest days in the history of the company. Since May, the stock price of the company has plunged by approximately 20%. The reason for the fall down is because of the destabilized economy of Brazil. It is struggling hard to keep velocity against U.S. dollar. The company is amongst the indebted companies worldwide and most of the debt that it owes is denominated by dollar. Currently, Brasileiro Petrobras SA (ADR) (NYSE:PBR) is incurring loss in domestic market through sales of imported gasoline and diesel.
However, the conditions are expected to improve. With the immense oil reserves that Brazil owns, the unearthing of reserves of pre-salt has provided an additional 100 billion barrels of reserves that are equivalent to oil to entire reserves that Brazil held. Hence, if an investor is looking for investing towards oil production growth, this new development has made Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) amongst the finest pure-play stocks to be bought.
There is hue investment taken up by the company for te exploration and development of the enormous fields of oil. The company targets the production of 1 million oil barrels every day by year 2016.
For meeting up with the domestic demands of fuel, Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has bought its opening LNG shipment from Sonangol, Angola. The decision of the company to create agreements of import with Sonangol would cause augmentation in meeting domestic demands and its options to buy LNG.