Scripts:

Oil followed stock markets in their gains on Friday, jumping more than a dollar a barrel after that move by the US Federal Reserve, one company that’s being benefiting from higher oil prices in recent times is the energy giant Petrobras. I asked its CEO and president Jose Sergio Gabrielli whether if prices were going to ease in the near future.

No, we think that we have very er, a strict and tight market of supply and demand that while its leads are now lessening. we have a growth of the demand in the same level as the growth of supply. We don’t see any trend that goes to move the price further down or further up. However, as we have a very tight inventories and we have a very large movement of capital on the future markets. And we have a lot of residual political problems that affect the price of oil. We are going to see a very high-level volatility in the price of oil, moving in and around for very large numbers, but on the trend way we’re going to have very large.. er.. the prices are not going to ,to fall very fast.

This comes to one of the kind of house-keeping issues if you like. It is difficult, isn’t it, contain rising costs within oil companies at the moment, do you think that costs are inevitably going to rise or do you feel that you can hold them in check?

I think they’re going, they’re in the last two years, we have very high increase in price of our products with supply chains increasing our costs. The margins are collapsing right now. But we see some signs that we’re reaching a peak level. And we’re going to see a plateau, and then in the next two or three years, we’re going to see some leveling off of the price of our costs. However, we’re going deeper and more demanding areas for production of oil which means our oil costs are going up, and also on the refinery side , we have more complexity in the refinery, and the cost of refinery...

Notes:

Housekeeping: Management and maintenance of the property and equipment of an institution or organization.

Level off: to stop increasing or being reduced