Oil prices fall as Petrobras, YPF and Ecopetrol shares slide
Brent fell 8.47% on Nov. 4, while Latin American oil-company shares also declined as traders weighed US politics and uncertainty over the Iran war.
Oil prices and shares in major Latin American producers fell sharply on Wednesday, Nov. 4, as traders weighed uncertainty over the Iran war after the US midterm elections. Brent crude dropped 8.47% to $94.83 a barrel and West Texas Intermediate (WTI) fell 7.5% to $88.88, The National reported, citing prices at 8:58 p.m. UAE time. The Rio Times reported declines in Petrobras, YPF and Ecopetrol shares that day.
How far oil and producer shares fell
The National said Brent and WTI had retreated more than 15% that week and reached their lowest levels in nearly two months. The Rio Times reported that USO, a fund tracking WTI futures, fell 8.07% to $145.41; the fund’s price is not the same as the price of a barrel. Petrobras’s New York shares lost 6.97% to $19.61, their third consecutive daily decline. YPF fell 7.14%, while Ecopetrol dropped 3.75% to its lowest close in at least three months, according to The Rio Times.
What traders were weighing about the Iran war
The National said traders were looking for signals about the war’s direction after the midterm elections. The Rio Times reported that markets interpreted Vice President JD Vance’s remarks blaming the war for Republican losses as a sign Washington might seek to end the conflict. That interpretation came amid continuing military tensions: Washington confirmed limited strikes on Iran’s Qeshm island on Monday, while Tehran said it had intercepted drones in the area, The National reported.
Iranian leaders publicly rejected expectations of a US policy shift. Supreme Leader Ayatollah Mojtaba Khamenei reportedly said those expecting a change after the elections were “gravely mistaken,” The National reported. Foreign Ministry spokesman Esmaeil Baghaei warned Washington against further military action, saying Iran would not be intimidated by threats or aggression. The statements did not settle the direction of the conflict or negotiations.
Negotiations between Washington and Tehran had resumed, with Qatar and Pakistan mediating, but the next steps were unclear, The National reported. Aliasgar Tambawala, co-chief investment officer at Dubai-based Klay Group, said oil could stabilize if expectations of reduced US military engagement grew. He added that sustained progress toward de-escalation and improved security around the Strait of Hormuz would reinforce that relief.
Why the market moves matter beyond oil
The Rio Times said lower oil prices can benefit importing countries and drivers while putting pressure on the budgets and share prices of oil exporters, including Brazil, Argentina, Colombia and Mexico. The broader US market rose as oil fell: the S&P 500 gained 1.58% and the VIX, a measure of expected stock-market volatility, fell 20.26%. The Rio Times characterized the session as a rotation out of oil rather than broad market panic.
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Sources and context
- Oil Fund Falls 8.07% as Petrobras Slides 6.97% | Oil, Nov 4The Rio Times
- Brent oil slides to $94 on Iran uncertainty after US midterms | The NationalThe National
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