Brazilian oil price
There is an ongoing move to make Petrobras oil prices "managed". Instead of market prices.
Is this good or bad?
In the global market, what sets prices is supply and demand. Well-run companies get consistent results, year after year!
And so they walk with their own legs. They make a profit. They pay dividends to their shareholders. They invest to expand their production capacity. They diversify their portfolio to accommodate new sources with a view to reducing emissions.
We, here in Brazil are moving in the opposite direction. We are in the line of approving "administered prices". The premise is that we are "better than the market".
We already had, in the not too distant past, a similar situation of "prices established by the Government" and the result was almost the bankruptcy of Petrobras.
It is so unfortunate that we do not learn from our mistakes.