📉 Barrels and balances

DISCLAIMER

Tomorrow, May 1, is International Workers’ Day — a national holiday in Brazil. We’ll be back on Friday with our Brazil Daily newsletter!

IN THIS ISSUE

• Government sees oil auctions as budget boosters 

• Lula’s opposition pushes for inquiry into latest scandal

• From Web Summit Rio: How Brazilian workers approach AI

Government puts new oil auctions on its revenue radar

Brazil’s federal government is reportedly preparing an extraordinary auction of non-contracted pre-salt oil reserves in a bid to shore up public finances weakened by tumbling oil prices and persistent global uncertainty. The auction could take place as early as September and raise up to BRL 20 billion (USD 3.55 billion), sources familiar with the plan told Reuters.

👉 Why it matters. The move signals growing urgency in Brasília to close a potential fiscal gap as Brent crude prices remain well below the projections used in the 2025 federal budget. With the government needing to come up with a primary deficit of zero this year (with a margin of +/- 0.25% of GDP) alternative sources of revenue are becoming critical.

• A source involved in the discussions described the plan as a fiscal pressure valve: “It is important to have pressure relief valves because the revenue outlook becomes increasingly uncertain due to external factors.”

• A bill to greenlight the auction is expected “soon,” followed by a resolution from the National Energy Policy Council (CNPE) and the issuance of an official auction notice.

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