By Brazil Stock Guide – Diesel sold by Petrobras (B3: PETR4) is now priced about 30% below international parity, marking the largest discount since 2022, according to a report by Goldman Sachs.
The gap widened after a surge in global fuel markets driven by escalating tensions in the Middle East. Since last Friday, prices for Brent crude oil have risen about 16%, while international diesel benchmarks jumped 33%, the bank said.
Petrobras typically avoids immediately passing global volatility through to domestic fuel prices. The company said earlier this week it is monitoring market developments before deciding on any adjustment.
About 25% of Brazil’s diesel supply depends on imports, meaning a prolonged pricing gap could discourage independent importers and reduce fuel availability in the country.
Still, Goldman noted that higher crude prices tend to boost Petrobras’ upstream earnings. With roughly 32% of its oil production exported, gains from stronger global oil prices could offset potential pressure on refining margins.
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