How can you buy Petrobras shares?
Petrobas is a large oil company. The company is even the largest company in South America. If you want to invest in the emerging economies of South America, an investment in Petrobas can be interesting. In this article we look at how to buy Petrobas shares. You can also consult the latest stock price of the company here.
Do you want to invest in South America? And do you have confidence in the oil industry? Then it may be wise to buy Petrobas shares. It is always advisable to do this at low cost. This way you can achieve a higher return with your investment. You can buy your Petrobas shares at eToro: at this broker you always pay 0% commission. Use the button below to buy Petrobas shares directly from eToro:Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
How can you actively trade in Petrobas?
The share price of the company Petrobas strongly depends on the oil price. When the demand for oil collapses under economically unfavourable conditions, the company can make less profit. The share price can then drop significantly. At the same time, high demand and a high price can also be bad for Petrobas, as they are obliged to buy oil on the world market and sell it at a loss in Brazil.
As an active trader you can respond well to the latest developments of the CFD share Petrobas. A good party where you can speculate on the price development is Plus500. The beauty of this broker is that you can try out the possibilities 100% without risk. Use the button below to directly open an account with Plus500:72% of retail CFD accounts lose money.
What is Petrobas’ stock price?
Are you curious about Petrobas’ stock price? Understandable! In the graph below you can directly consult the CFD share price. With the buttons you can immediately open an investment when the time is right.
Is it smart to invest in Petrobas?
The enormous importance of Petrobras for the Brazilian economy makes an investment in this company somewhat less risky. Investing in Petrobras can therefore be interesting when you find it interesting to invest in South America.
Oil is losing popularity worldwide: this is because it is becoming increasingly clear that oil plays a major role in the climate problem. Petrobas will therefore have to look for more sustainable sources of income in the future. For now, however, we do not foresee any problems. Oil is still too important within Brazil, so the company still has enough customers to make money from.
There are also not insignificant risks involved in investing in Petrobas. The main risk for an investment in Petrobas is the company’s obligation to sell oil purchased on the world market (at a loss) to domestic customers. This, of course, significantly reduces the company’s profitability.
Majority government shareholdings can also be risky. When an unreliable party comes to power, you can lose a lot of value as a shareholder. It is therefore wise to keep a close eye on the political situation in the country before investing in Petrobas.
An investment in Petrobas can add extra diversity to your portfolio. You invest in a completely different region. When economic conditions are bad in Europe or America, the economy in Brazil can still function well.
About the company Petrobas
Petrobras stands for ‘Petróleo Brasileiro‘. This is a Brazilian-based oil company with its headquarters in Rio de Janeiro. The main activities of the company are the exploitation, production and refining of crude oil.
In addition to petroleum, the company also produces natural gas and ethanol. Petrobras has enjoyed considerable popularity among investors for many years. This is probably due to the fact that the company is the largest company in both Brazil and South America as a whole.
Active throughout the oil industry business chain
Petrobras is active within every chain of the oil industry. Moreover, past experience has shown that Petrobras is an indispensable link in the production of barrels of oil. On average Petrobras produces a sloppy 2 million barrels of oil every day. This production is equal to about 80% of the entire oil production on Brazilian soil. In the past, 90% of Petrobras’ total production consisted of oil while the remaining 10% was reserved for gas.
This underlines the economic and industrial importance of Petrobras not only for Brazil, but also for the whole of South America. Another interesting detail is that Petrobras owns all the refineries that can be found in Brazil. Most of these refineries are located in the southeast of the country. The largest refinery is in the town of Paulínia. Their Own production of gas is not enough: Brazil is therefore forced to import natural gas from, for example, Bolivia.
The history of Petrobras
Petrobras was founded in 1953. At that time, it was founded by the President of Brazil at the time, ‘Getúlio Vargas’. About a year after the company was founded, it was able to really start developing its business activities. The company has a listing on the São Paulo stock exchange and is also listed on the New York Stock Exchange.
Until the time of writing, the Brazilian government is still Petrobras’ main shareholder. This is likely to remain so in the future. In fact, in order to ensure that the company did not end up in foreign hands, Brazil has chosen to enshrine in law that the government must always hold a majority of the voting rights. At the end of 2018, the Brazilian Government had a 50% stake in the company, in part due to the existence of this legislation.
This legislation from the Brazilian Government is very logical. Petrobras plays a crucial role for the Brazilian economy. It is well known, for example, that the government in Brazil, through Petrobras, is trying to keep the prices of fuels and thus inflation in the country as low as possible.
Regrettably, the refineries owned by Petrobras do not manage to produce enough to fully meet the national oil demand. For this reason, it is necessary for the company to purchase oil products on the world market. The company must then sell this oil at a loss in its own country. This legal obligation obviously reduces the company’s potential profits. When investing in oil, it is important to take this unattractive provision into account.