Petrobras ADRs fell in Monday pre-market trading as global oil prices retreated. Ordinary shares (PBR) dropped 3.86%. Preferred shares (PBRa) declined 3.06%.
Crude prices slumped following a preliminary peace agreement between the U.S. and Iran. The deal anticipates the removal of a U.S. naval blockade and the reopening of the Strait of Hormuz. This development is expected to increase global oil supply. Brent crude fell approximately 5.15% to $82.73 per barrel.
Investment firm XP maintained its preference for Petrobras within the Brazilian energy sector. Analysts cited a strong risk-reward balance and attractive free cash flow yields. XP reiterated a buy recommendation for the preferred shares despite the lower oil price outlook.