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The prices of bonds linked to the big oil company Petróleo Brasileiro SA fell on Monday after Brazilian President Jair Bolsonaro replaced the company’s chief executive.

The company’s $ 4 billion bond, due in 2030, recently traded at 105.355 cents on the dollar, according to MarketAxess, from 108.315 cents on Friday. A $ 2.5 billion bond due 2115 recently traded at 109.585 cents to the dollar, from 113.530 cents on Friday.

Petrobras shares and bond prices fell after Mr Bolsonaro on Friday appointed an army general, Joaquim Silva e Luna, to succeed CEO Roberto Castello Branco. Shares fell and were recently down 20% in Brazil after reports Mr. Branco intended to stay at work until his official term ends on March 20.

Recent increases in fuel prices have heightened tensions between the CEO of Petrobras and Mr. Bolsonaro. Last Thursday, the company announced it would increase the price of gasoline by almost 10% and the price of diesel fuel by almost 15%. Mr Bolsonaro criticized the decisions and promised changes in the following days.

This decision frightened investors. Analysts at Bank of America and Credit Suisse, among others, downgraded the company’s stock as tensions between the two escalated.



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