Petrobras (PETR4) shares fell on Monday as Brent crude dropped below US$90 a barrel, reversing the gains seen in global energy markets over the previous week.
The sell-off follows a pause in Iranian attacks and a broader diplomatic de-escalation in the Strait of Hormuz, which has normalized shipping flows and stripped the risk premium from oil prices.
The Brazilian state oil major had seen its shares climb more than 2% on Friday, tracking a rally driven by escalating geopolitical risks in the Middle East.
The retreat in commodity prices has cast a shadow over Petrobras's near-term revenue outlook.
The Brazilian state oil major had seen its shares climb more than 2% on Friday, tracking a rally driven by escalating geopolitical risks in the Middle East.
With the immediate threat to shipping lanes receding, investors are repricing the stock based on fundamental demand rather than supply disruption fears.
Despite the headwind from lower oil prices, analysts maintain a positive stance on the stock.