Wall Street Transcript Interview with Marcus Sequeira, Director at Deutsche Bank Securities Inc.: Latin American Oil Production Prospects for 2013

Wall Street Transcript

67 WALL STREET, New York - June 28, 2013 - The Wall Street Transcript has just published its Oil & Gas Review 2013 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends

Companies include: Petroleo Brasileiro (PBR), YPF S.A. (YPF), Petrobras Energ?a Participacio (PZE), Ultrapar Holdings Inc. (UGP), Tenaris SA (TS) and many more.

In the following excerpt from the Oil & Gas Review 2013 Report, an expert analyst discusses the outlook for the sector for investors:

TWST: With the information you have based on your analysis, how do you expect oil prices to trend in Latin America for the first part of 2013, and what will be the impact for your companies?

Mr. Sequeira: We have a team of economists that forecast oil prices. One thing that's interesting for Brazil and Argentina, actually counterintuitive, is that both countries have pricing controls of refined products. In Brazil, the control is in gasoline, diesel and LPG, and in Argentina it is in all the refined products, so higher oil price may not be as positive for Petrobras, YPF and Petrobras Argentina stocks.

The fact that there are pricing controls of refined products in Brazil and Argentina mean that for these companies, higher oil prices may not be very positive or as positive as it is for companies that can price their products according to the market. So for Brazil, one problem that we have had over the past couple of years, also because of the pricing controls in gasoline and diesel and the consequent increase in demand is that the amount of imports has grown significantly, and therefore Petrobras is importing higher priced gasoline and diesel and selling them at lower prices in Brazil. So the company is subsidizing gasoline and diesel prices. So for Petrobras, higher oil price is not great because of the subsidies. In Argentina, at least the subsidies are not a burden for the companies, but for the government.

TWST: What are some of the unique characteristics or nuances about the Latin American energy sector that North American investors should keep in mind when investing in the space?

Mr. Sequeira: I think the one point in favor of the Latin American energy companies is that they have...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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