Highlights include Petroleo Brasileiro SA (PBR), China Petroleum & Chemical Corp. (SNP), Vale (RIO), Cosan Limited (CZZ) and Gerdau SA (GGB).China Continues to Pursue Long-Term Investments in CommoditiesYesterday, leading Japanese business newspaper Nikkei informed that China is considering a plan to use part of its US$2 trillion reserves to buy oil reserves and diversify its international investments, reducing the exposure to U.S. bonds. Currently 2/3 of the Chinese reserves are denominated in U.S. dollars.If this plan is approved, we foresee two direct consequences: (i) Oil prices should recover, leading the way to other commodity price increases, and (ii) the U.S. dollar should fall against international currencies like the Yen and the Euro, a development that would also be positive for commodities prices in general, since they are all negotiated in U.S. dollars -- thus a lower dollar would ...

Last week, Petrobras (PBR) announced it has signed two Memorandums of Understanding with Chinese institutions and an export oil contract with UNIPEC Asia Co. Ltd. -- a subsidiary of China Petrochemical Corporation, or SINOPEC (SNP) -- to export around 100 thousand barrels of oil per day. The Memorandum between China Development Bank Corporation, SINOPEC and Petrobras presents has the followings details : Credit supply to Petrobras, including the option to off-set the debt with the export of oil, as per Chinese institution option and in a volume to be defined in the future; Increase the oil export of Petrobras to China; Partnerships between Petrobras and Chinese companies to develop projects in several oil industry segments; Supply of service, material and equipment by Chinese companies to Petrobras; and Promoting contacts between Chinese and Brazilian companies for the purpose of creating joint ventures.The amount of the deal is estimated ...