By Jeffrey T. Lewis

SAO PAULO--Petroleo Brasileiro SA's preferred shares fell 1.6% after a Brazilian news organization reported that the man nominated last week by Brazil's government to be chief executive of the state-controlled oil company had backed out of accepting the position.

The preferred shares of the company known as Petrobras fell to 32.48 reais, the equivalent of $7.03. The shares are up more than 12% since the start of the year.

The Globo news organization reported Monday that oil sector consultant Adriano Pires had changed his mind about replacing current CEO Joaquim Silva e Luna at the top of the company. Mr. Pires, Petrobras and the office of Brazilian President Jair Bolsonaro didn't immediately respond to requests to confirm the news.

Brazil's government had nominated Mr. Pires for the position a week ago. He was going to replace Mr. Silva e Luna, a Brazilian army general who has held the top post at the oil company since February of last year, after Mr. Bolsonaro repeatedly criticized the company for raising fuel prices sharply in March in the wake of higher crude oil prices.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com


(END) Dow Jones Newswires

04-04-22 1306ET