Petrobras investor confidence lower on strikes

RIO DE JANEIRO, May 29, 2018 – Petrobras shares fell 15% on Monday following news that the government had reached a deal with striking truck drivers that will see the NOC’s fuel prices lowered for at least 60 days.

Over the past 10 days, Petrobras’ stock value shrank by one-third, or USD 34.1 billion, as drivers blocked streets and highways in protest of the company’s diesel pricing mechanisms. Shareholders are worried that this may set a precedent for future government interference in the company’s marketing policies.

Petrobras’ investors have been further shaken by threats of an internal strike by the oil workers’ union, expected to begin today, seeking the removal of CEO Pedro Parente. Though rumours have been circulating that Parente will resign, he has maintained that he plans to continue in his position.

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