MercoPress. South Atlantic News Agency

Brazil's trade balance to benefit from oil price drop

Brazil's Central Bank President Alexandre Tombini sees the good part of oil price fall.

Central Bank President Alexandre Tombini sees the bright side of the international trend that is causing many others a headache, because the country is a net petroleum importer.

 Brazil's Central Bank President Alexandre Tombini told a newsroom on Wednesday in Brasilia that the recent downturn of oil's international price could lead the country to save between 5 and 10 million US dollars in imports, but those figures might need reassessment by the hour since the trend continues to bring the quotation closer to 50 US dollars per barrell, falling from $ 56.47 to under $ 55 in one day, having touched the $ 54 line before bouncing back up slightly.

“We are net importers of petroleum. If the barrel continues at around US$55 to US$60 per barrel we would see a savings in out trade balance of anywhere from US$5-10 billion,” Tombini was quoted as saying by The Rio Times. “It is difficult to say if these (current) prices will be sustained,” he added.

On Thursday, crude for January delivery finished $2.36 lower at $54.11 a barrel on the New York Mercantile Exchange, the lowest settlement for a front-month oil contract since early May, 2009, with no foreseeable recovery in the coming weeks.

”Although Tombini said that due to the lower prices petroleum companies around the world are likely to revise their investments plans for the next few years, the head of Brazil’s energy regulator ANP (National Petroleum, Natural Gas and Biofuel Agency), Magda Chambriard, guaranteed that petroleum production projects in the country, especially sub-salt layer projects, are ‘robust’ and will continue,” the Times explained.

It is estimated that by 2035 Brazil will account for almost sixty percent of all deep-water production in the world. Today, about 92.4 percent of all oil production and a little over 73 percent of all natural gas extracted in Brazil comes from offshore oil fields.