Production Is Up at Petrobas, Just As Crude Oil Prices Are Down

Just as crude oil hits a seven month low, closing a little over $91 a barrel yesterday, Petrobas announced that it broke its own monthly record for domestic production, now producing almost 1.9 million barrels per day in August (see Business Week article). No word yet whether George Soros had lighten up on his initial $811 million stake in the company after it was down 28 percent on recent falling crude oil prices (see previous post). If crude oil prices continue to fall (they are rallying back this morning), the expensive off-shore oil production may begin to generate fewer profits than expected, even with production increases.