Trade the Petrobras share!
PETROBRAS

Analysis before buying or selling Petrobras shares

Trade the Petrobras share!
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If you are wondering how to buy Petrobras shares and how to perform a reliable and objective analysis of its price, we offer you here to learn more about this company and its stock with some practical information.

Elements to consider before selling or buying Petrobras shares

Analysis N°2

The evolution of the natural gas market, which is becoming increasingly important and in which Petrobras is particularly well positioned, is also a factor to be taken into account.

Analysis N°3

With Petrobras Group investing heavily in the search for new oil wells, this news should also be used to take a position in this stock effectively and at the right time.

Analysis N°4

The results of the group's international expansion strategy will also be closely monitored in the coming years.

Analysis N°5

Of course, and given that Petrobras is a semi-public company, we will have to follow closely the communications of the Brazilian government and the evolution of the regulation of this business sector.

Analysis N°6

All conflicts related to political instabilities in South America will of course also have to be taken into account, as will their consequences.

Analysis N°7

Finally, we will keep an eye on the fierce competition that reigns in this sector of activity and that may cause some loss of market share for the Brazilian group.

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General presentation of Petrobras

Petrobras is a Brazilian company whose main activity is the research, extraction, refining, transportation and sale of oil. Currently, it is the largest company in Brazil and its headquarters are located in Rio de Janeiro.

But Petrobras is also one of the 15 largest oil companies in the world. In September 2010, it even achieved the feat of carrying out the largest capital increase in history with more than 70 billion dollars of funds raised on Well Street.

Thanks to modern technology in deep and ultra-deep water drilling, it achieves world records in seabed extraction.

Recently, due to the drop in oil prices, Petrobras shares have become more accessible as their prices have fallen significantly.

We will now take a look at the Petrobras share price and more specifically at its historical stock charts. An analysis of the technical data of the last ten years gives us some interesting information.

There have been many very volatile movements in this price, which demonstrates the interest of traders in this asset. In particular, it fell sharply in 2006, from $46.42 to $13.12 in a few weeks. Between November 2007 and April 2008, it experienced a nice recovery with a high reached at the threshold of $39.81.

Since then, and after a new fall in 2008, the price of Petrobras shares has followed a slight downward slope, but it is of course advisable to carry out a personal and complete technical analysis to try to anticipate its future variations.

Analysis before buying or selling Petrobras shares
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The major competitors of Petrobras

The Brazilian group Petrobras was still unknown a few years ago, but it has managed to establish itself as one of the world's major oil companies. However, it faces some major international companies that compete fiercely with it. That's why we propose you to discover here the 2017 ranking of the biggest oil companies in the world by importance of turnover.

Exxon Mobil

The world's number one oil company is currently Exxon Mobil in the United States with revenues of $405.35 billion.

Petrochina

The second position is occupied by Petrochina with 291.08 billion dollars of turnover.

Royal Dutch Shell

The third largest company in the world is Royal Dutch Shell in the Netherlands with 226.73 billion dollars.

Petrobras

ranks 5th with $153.35 billion in revenues.

Ecopetrol

Next comes Ecopetrol in Colombia with 136.81 billion dollars.

Gazprom 

with 134.42 billion dollars.

BP 

with 133.45 billion dollars.

China Petroleum

And finally China Petroleum with 99.11 billion dollars.


The major partners of Petrobras

Finally, here are the main recent partnerships set up by the Petrobras group.

Tereos

In 2010, Petrobras became a partner of Tereos in Brazil to develop the ethanol and bioenergy industry.

Total

In 2017, Petrobras and Total signed an agreement regarding assets and establishing a strategic alliance with technical cooperation of both entities in research, operations and technology.

Technip

Also in 2017, Petrobras contracted Technip, an oil and gas project provider and DOF Subsea for a pipelay vessel under a charter contract and for a period of 8 years.

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Positive factors for Petrobras shares
The factors in favour of a rise in the Petrobras share price:

If you want to trade up or down on the medium or long term on the Petrobras share price, we advise you to first carry out a complete study of the strengths and weaknesses of this company in order to best determine its future development possibilities. To help you do this, here are the main strengths of this group and its share price.

Firstly, this Brazilian company has a special status in its home country as a semi-public company. As a result, it is of course the leader in its sector in Brazil and has certain advantages over its competitors.

In addition, Petrobras also has a significant presence in certain countries, particularly Mexico, where it is particularly well established. This protects it from the risks associated with the Brazilian economy.

Petrobras has also established itself as an international leader in the field of advanced technologies for the deepwater oil production industry. The company has a head start and benefits from the revenues generated by the patents filed.

The Brazilian group can of course also rely on its very large workforce, which currently employs over 80,000 people, mainly in Brazil but also in the rest of the world.

Finally, with regard to the South American market, it should be remembered that the Petrobras group is currently the largest company in this geographical area, which makes its stock market share very attractive to investors.

Negative factors for Petrobras shares
The factors in favour of a drop in the Petrobras share price:

We have just seen together that Petrobras Group has certain advantages and strengths that should undoubtedly make its stock very attractive to investors in the months and years to come. But before you embark on a strategy to buy this stock, it is also essential to know the few weaknesses of this company that could have a bearish influence.

First of all, let's remember that the Petrobras group still shows a strong dependence on Brazil because it is in this country that it makes most of its profits despite an intensive expansion strategy.

The group also recently suffered significant losses in revenue and profitability after an accident on one of its platforms. This incident still leaves its mark today and of course worries traders about the possibility of further problems in the future.

Finally, the Petrobras group is also currently suffering the repercussions of the army's takeover of Bolivia. Relations between the Brazilian oil group and this country are very tense, which could of course have consequences on oil sales to this destination, which is one of Petrobras' main markets.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.
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