Dec. 20 (Bloomberg) -- Petroleo Brasileiro SA, the state- controlled oil company that plans to invest $30.6 billion to increase production, was raised to ``buy'' from ``hold'' at Citigroup Inc. on the expectation that higher oil prices will boost profit.

Petrobras, as the company is known, may rise to 115 reais a share, wrote New York-based analyst Tereza Mello, who's previous forecast was 100 reais a share. Citigroup raised its long-term oil price forecast to $75 a barrel from $60 a barrel, Mello wrote in a note to clients.

Petrobras gained 2.47 reais, or 3 percent, to 83.80 reais at 9:31 a.m. New York time.

To contact the reporters on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net;

Last Updated: December 20, 2007 09:42 EST