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Brazil: Labour action signals step change and raises pressure on Petrobras

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Report summary

Brazilian oil production fell as a result of the federation of oil workers (FUP) initiating an indefinite strike on 1 November in response to Petrobras' divestment programme and wage renegotiations. Traditionally labour activism has not drastically impacted production but this strike shows the environment has become more volatile after the stoppage led to a reported initial drop of 273 000 b/d before mitigation efforts reduced the figure to 127 000 b/d. With the addition of labour activism Petrobras' already complex operating environment has deteriorated further.

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    Brazil: Labour action signals step change and raises pressure on Petrobras

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