Shares of Petroleo Brasileiro SA Petrobras (NYSE: PBR) continued their downward trajectory on Tuesday, plummeting 5.08% in intraday trading. This marks the fifth consecutive day of declines for the Brazilian oil giant, following Monday's significant 8.53% drop.
The ongoing sell-off appears to be driven by two main factors. First, investors remain concerned about Petrobras' stance on diesel prices. Despite a request from Brazil's Mines and Energy Minister Alexandre Silveira to consider lowering diesel prices for distributors, Petrobras CEO Magda Chambriard indicated that the company would not make hasty decisions amid global geopolitical turbulence. This resistance to price cuts may be contributing to investor unease about potential government intervention in the company's pricing policies.
Secondly, the broader market sentiment continues to be affected by escalating global trade tensions. With reports of potential new tariffs between major economies, particularly involving China and the United States, investors are showing caution towards stocks in emerging markets and the energy sector. As a state-controlled oil company in Brazil, Petrobras is particularly susceptible to these macroeconomic concerns, which may be amplifying the stock's recent volatility.
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