Attack on Saudi Arabia boosts interest in Brazil oil to be auctioned

The director-general of Brazil’s National Agency of Oil, Natural Gas, and Biofuels (ANP), Décio Oddone, said that the drone attack on facilities in Saudi Arabia on Saturday (Sep14) will whet foreign companies’ interest in participating in auctions of Brazilian oil, slated to be held in October and November.

The attack “increases the perception of risk in the oil market, which is likely to be reflected on prices, even after the full resumption of Saudi supplies. This increases the value of [pre-salt] oil and other Brazilian assets,” said Oddone in a note released Tuesday (16).

In the Brazilian financial market, the attack also brought about direct effects. On Monday (16), preferred stocks of Brazil’s state-controlled oil giant Petrobras were among the top stocks negotiated at B3, and saw a 4.39 percent surge. Ordinary stocks also closed out the day up 4.52 percent.