President of Petrobras states that, without escalating the conflict, the price of a barrel of oil should remain at US$70 to US$90
The president of Petrobras, Jean Paul Prates, said in interview has Bloomberg TV on Monday (January 29, 2024) that oil could exceed the value of US$90 per barrel this year, if attacks on merchant ships in the Red Sea intensify. The vessels are being targeted by the Houthis, who operate in Yemen. The attacks are a way for the rebel group to support Hamas in the war against Israel.
“We have a very fragile bottleneck for the oil and gas business. No one was paying attention to this for decades. You have Yemen on one side and Somalia on the other”, stated Prates about the map of the Arabian Peninsula and Africa region. According to him, without any escalation of conflicts, oil should continue to trade at US$70 to US$90 in 2024.
Prates stated that the world is not “at the end of the oil era” and therefore the product will be “very important” on geopolitical issues. He said he sees that the situation in 2024 will be similar to that in 2023 with regard to price and that it will be necessary to “protect” of the risks that conflicts can cause.
“At this moment, Petrobras is quite protected”, these. “We do not import oil from the Middle East. On the contrary, we export oil”, declared.
He said that Petrobras does not sail through the seas and canals in the region and, therefore, does not need to “deviate so much” the route of their ships.
Prates stated that the Brazilian government will help mediate the dispute between Venezuela and Guyana on account of the territory of Essequibo. He stated that Exxon Mobil did “a series of discoveries of several billion barrels of oil” in the area and Petrobras could invest in oil projects in the region.