Brazil and its exchange traded fund (ETF) are already growing, but what happens when a new offshore field is discovered? This new oil field could turn the country into a global exporter and make Brazil the No. 8 energy producer, up from No. 17, reports Investor’s Business Daily. The new field is just what the president was looking for: more oil so energy prices would be lower and available to the poor, who often cannot afford the high energy prices.
Then the question comes into play, should/would Brazil join OPEC? But with OPEC setting production quotas, that may not help make energy plentiful or keep down costs. There could be as many as 100,000 barrels a day by 2011. Some say Brazil should not join OPEC, but should instead be independent so the people of Brazil can benefit as well as other oil-dependent nations.
Energy makes up 24.7% of EWZ, which is up 76.7% year-to-date. Petrobras, Brazil’s state oil company, is the top holding at 13.5%.
For full disclosure, some of Tom Lydon’s clients own EWZ.
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