Petrobras rejects extra diesel orders as prices in Brazil lag global market

Core Viewpoint - Petrobras is rejecting additional diesel orders from fuel distributors as domestic prices fall significantly below global levels, impacting the agricultural sector during harvest season [1] Company Summary - Petrobras is currently selling diesel at a price that is 85% cheaper than imports, which is causing a significant imbalance in the market [1] - The company is only supplying the contractually obligated amount of diesel to distributors and is not allowing extra orders to prevent distributors from profiting from future price increases [1] - CEO Magda Chambriard stated that Petrobras does not pass short-term global price volatility onto consumers and is evaluating the new oil price levels before making any adjustments [1] Industry Summary - The steep discount on Petrobras diesel is diverting buyers from imported cargoes and private refiners, leading to logistical strains and supply imbalances [1] - In Rio Grande do Sul, farmers are experiencing difficulties in sourcing diesel, despite the oil regulator ANP stating that there are sufficient stocks for regular supply [1] - The issue is attributed to buyers wanting to purchase at current Petrobras prices while sellers are asking for higher prices to hedge against potential future increases [1]