Feb. 28 (Bloomberg) -- Petroleo Brasileiro SA, Brazil's state-controlled oil company, expects the price of Brent crude oil, to average $35 to $40 a barrel this year, more than a fifth below today's prices, the company's chief financial officer said.

Rio de Janeiro-based Petrobras, the largest Latin American company by market value, expects the price of Brent crude, a world benchmark, to fall to the $33 to $35 a barrel range ``in the long term,'' said Jose Sergio Gabrielli, the company's CFO, said in an interview.

The company plans to continue with a policy of setting Brazilian fuel prices in line with long-term world oil prices, rather than daily changes in the spot price, he said. Brent crude rose 46 cents to $50.07 a barrel on London's International Petroleum Exchange.

Production, which was about 1.73 million barrels a day in the fourth quarter, little changed from a year ago, should rise 15 to 17 percent in 2005, Gabrielli said with two major offshore platforms beginning production by mid year and another in the third quarter.

Brazil's real is likely to fall to about 2.90 to 3.00 reais to the dollar this year, he said. Brazil's real was little changed at 2.6178 to the dollar at 6:25 a.m. New York time.

To contact the reporter on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.net,

Last Updated: February 28, 2005 06:26 EST