Dec. 3 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil company, won’t reduce planned offshore investments after U.S. bank failures caused a world credit crunch, Brazilian President Luiz Inacio Lula da Silva said.

Lula, who spoke at the World Engineers Convention in Brasilia, said that Brazilians should keep buying and consuming in order to prevent the crisis from spreading.

Brazil’s Budget Minister Paulo Bernardo said the government is in negotiations with the auto and other industries over measures Brazil can take to ensure economic growth next year.

Lula also aid Brazil plans to auction rights to build a high-speed rail link between the cities of Rio de Janeiro and Sao Paulo in 2009.

To contact the reporters on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.netAndre Soliani in Brasilia at asoliani@bloomberg.net

Last Updated: December 3, 2008 11:42 EST