Petrobras shares slump on political interference worries

Petrobras shares slump on political interference worries

Corporate & Sovereign Strategy Economy & Policy Equity Brazil Oil People Politics Energy Capital Markets

Shares in Brazil's state-run oil company Petrobras dropped sharply on Tuesday as investors expressed concerns of political interference after José Mauro Coelho was sacked as CEO after just 40 days on the job. "It obviously smacks of very serious government interventionism in order to artificially control prices. In the medium to long term, this may cause relevant losses to Petrobras," said David Zylbersztajn, former director general of petroleum regulator ANP, who warned against price subsidies.

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