US government asks Petrobras to raise crude oil production

The U.S. government officials in March asked Petrobras, Brazil’s state-run oil company, whether it could increase the crude production. Consequently after the Russia’s invasion of Ukraine which made global price rise.

Brazil is the world’s ninth-largest oil producer and hence the US officials wanted to increase the oil output due to price hike. However, the US officials came away empty-handed. Petrobras, which is Petroleo Brasileiro SA (PETR4.SA), said that the production levels were a function of business strategy rather than diplomacy. The company also said that a short-term production boost would not be logistically possible. However, that Petrobras was scalling up the medium-term production. Consequently, as a part of an announced plan to add 5,00,000 barrels per day of crude production by 2026.

Washington has been continuously making political push to secure the global oil supplies. It also kept a lid on the prices after Moscow’s invasion of Ukraine. U.S. officials are also have been trying to improve the relations with the government of President Jair Bolsonaro. Despite being disagreements over the Ukraine war and environmental policy.

However, it was said that initial contacts were made between the U.S. and Brazilian governments. And Petrobras officials were asked in an ‘informal’ follow-up meeting. But, Petrobras denied that any of meeting had occurred with the officials of U.S. State Department. The company did not responded when asked if it had been contacted by any other U.S. government agency.