Ibovespa is boosted by rise in Petrobras shares

The São Paulo Stock Exchange (B3) closed higher on Monday (26). The growth was reflected in the Ibovespa, which rose 0.94%. The movement was driven by the increase in the price of oil, which also highlighted Petrobras shares “PETR3” and “PETR4”. They grew 8.96% and 7.26%, respectively.

The rise in oil prices is explained by conflicts in the Middle East, a region with the world's main oil exporting countries. Last Sunday (27), Israel took action in Lebanon to thwart the actions of the terrorist group Hezbollah. This was the main factor that led to oil reaching its highest level in a week.

Fuel price

Even though the price of a barrel of Brent oil – the global benchmark for the price of crude oil – has increased, this will not necessarily reach consumers in Brazil. This is what Ilan Arbetman, an analyst at Ativa Investimentos, points out (via UOL):

“Even with the fluctuating price of oil, Petrobras avoids passing on these ups and downs to the pump. Normally, it waits a bit to set prices. The last adjustment before this one in July was for gasoline in October 2023 and for diesel in December. If this trend of price increases continues, there may indeed be pressure for Petrobras to pass on prices, especially for gasoline.”.

Furthermore, according to calculations made by Arbetman, there is a 10% gap in the price of gasoline in Brazil compared to the global average; this does not exist for diesel, which follows prices established worldwide.

_{Former Brent Oil platform in the United Kingdom (Photo: reproduction/Unplash/Kevin Harris)}

Dollar variation

The dollar closed Monday (26) up 0.23%. The currency is likely to fall as long as there is an interest rate cut in the US economy. Last Friday (23), Jerome Powell, leader of the US central bank, hinted that this would happen in September. This was immediately reflected in the market, with the dollar falling in most countries.

Despite this, the currency has risen again, including in Brazil. Elson Gusmão, director of exchange at Ourominas, explains that (via UOL) “What influenced the exchange rate was the size of the interest rate differential in the world.” This is due, for example, to the Japanese Central Bank's persistence in maintaining high interest rates, causing Brazilian investors to allocate money in the Asian country.

Featured Photo: São Paulo stock exchange rises this Monday (26) (Reproduction/Pexels/Pixabay)