RIO DE JANEIRO, Feb 14 (Reuters) - Brazilian state-run oil company Petrobras is closely monitoring the tense situation in Ukraine, its CEO told Reuters on Monday.

Joaquim Silva e Luna said he considers a war to be unlikely and added that a stabilization of tensions would cause oil prices to cool.

For the year, the price of Brent, the benchmark crude in Brazil, has risen over 20%, hitting its highest levels since 2014 on Monday.

"We are experiencing a period of low OPEC stock, excess demand over supply and a resumption of the economy at a much higher level than what the world expected post-pandemic," said Luna.

Petroleo Brasileiro SA, as the company is formally known, says it sets domestic fuel prices in line with international rates. However, the company acknowledges that it lets fuel prices in Brazil de-couple from international parity for brief periods when it determines that price swings are due to short-term shocks rather than structural issues.

When asked about further fuel price adjustments given the situation in Ukraine, Luna said the company is "following and monitoring to see if it is a point outside the curve or if it has already bent the curve."

According to Luna, at the moment when "the conflict stabilizes," the price of Brent will fall. (Reporting by Rodrigo Viga Gaier in Rio de Janeiro Writing by Carolina Pulice Editing by Matthew Lewis)