Oil Wrap: WTI Eases as Brazil’s Petrobras Rises on Búzios

Brazil's Ibovespa index rose 0.30% to 175,665, led by Petrobras shares up 2.0% amid a legal battle over a 12% oil-export tax. The real weakened 0.67% to 5.1965 per dollar. Homebuilders and retailers fell, with MRV down 5.1% and Magazine Luiza down 4.6%.

The Brazilian real weakened past 5.20 per dollar, driven by hawkish comments from Fed Chair Kevin Warsh. The PTAX rate closed at 5.2005, up 1% for the week. Petrobras rose 2% after a court suspended a crude-oil export tax. The real's decline impacts expats' costs and investments.

Brazil's Ibovespa index rose 0.31% to 175,135 points, driven by a 3% gain in Petrobras after a court suspended a 12% tax on crude oil exports. The tax was extended to November by the government, creating uncertainty. The real remained stable at R$5.162 per dollar. Petrobras also announced new production vessels and bond buybacks.

Petrobras announced it will redeem $1.08 billion in global bonds early, excluding interest. The 5.999% notes due in 2028 will be redeemed in September 2026. The company also christened two new offshore production vessels and increased its credit line to Braskem to $456 million. Petrobras' shares have a market cap of $114.45 billion and a dividend yield of 20.5%.

Petrobras will redeem $1.08 billion in global bonds early, with a 5.999% coupon and 2028 maturity. The redemption, part of its liability management, is scheduled for September 2026. This is Petrobras's third early redemption in less than a year. Additionally, the company increased its trade credit line for Braskem to 2.35 billion Brazilian reais.

Petrobras reported Q2 2026 earnings of $1.72 per ADS, beating estimates, with revenues up 59.8% YoY to $33.61B. Growth was driven by record production and higher Brent prices. Refining utilization hit 101.2%, and cash flow reached $12.25B. However, future earnings may depend on crude prices and operational efficiency.