Against the wind, Brazil announces the cancellation of this year's auction plan for the pre-salt oil blocks.

Brazil's Planning Minister, Bruno Moretti, publicly confirmed at a press conference that the Brazilian federal government has decided to cancel the tender auction for the nearshore salt oil blocks that were supposed to be held this year. Moretti admitted that this unexpected decision led the government to fully deduct the potential fiscal revenue of 31 billion reais that had been anticipated in the latest revised budget report. However, he reassured the market by stating, "In the future, we will definitely reconsider this issue and optimize the underlying structure of the auction. It will undoubtedly play a key role in achieving our basic fiscal balance goals in a future fiscal year." The failed auction originally covered a group of mature oil fields that have entered the substantial development phase but have not yet signed the full rights contract. The successful bidders, whether Chinese or multinational energy giants, would essentially receive a direct share and profit rights from the increased production of these oil fields. As a comparison, Brazil's government held a similar auction for salt oil fields last year, but only managed to raise 7.8 billion reais for the treasury, significantly lower than the initial expectations of Wall Street and Brazilian officials.