$EC

Brent crude rose 3.7% to $109.86 per barrel, and US crude increased 3.5% to $101.41, driven by Middle East supply fears, according to Energy Now. Oil funds BNO and USO also saw gains. Petrobras, YPF, and Ecopetrol rose in Latin American markets.

Colombia's COLCAP index fell 0.55% to 2,566.28, while the peso strengthened 0.6% to 3,176 per dollar. Ecopetrol's NY shares rose despite the index decline, supported by higher oil prices. Industrial production dropped 3.7%, but retail sales rose 7.3%. Prediction markets expect no central bank rate change in October.

Ecopetrol (BVC:ECOPETROL; NYSE:EC) appointed Jose Eduardo Barreneche as Corporate Compliance Officer, effective by October 20, 2026. Barreneche has over 20 years of legal and compliance experience. Rodolfo Mario García, the previous officer, will leave by October 13, 2026. Julio Ricardo Corredor Calderón will serve as interim officer until Barreneche's start.

Oil prices rose 2.55% to $147.58 as Hurricane Isaias shut 1.28M bpd of US Gulf production. Petrobras gained 2.92% to $24.69, Ecopetrol 1.86% to $16.94, YPF 0.85% to $49.90. OPEC+ kept Nov targets unchanged. WTI settled at $91.49, Brent at $104.28. Supply disruptions and Trump's Iran post influenced markets.

Colombia's economy is influenced by the government, central bank, Ecopetrol, and three banking groups. President Abelardo De La Espriella took office in August 2026, inheriting a 'serious fiscal situation.' Ecopetrol, the state-owned oil giant, reported a 35% revenue increase in Q2 2026. The central bank raised interest rates to 12.25% in September 2026. Key financial groups include Bancolombia, Davivienda, and Banco de Bogotá, which together hold about two-thirds of net loans.

The Colombian peso weakened to 3,239.09 per dollar on October 7, with annual inflation rising to 6.29%. The central bank's rate is at 12.25%. Ecopetrol and Bancolombia shares fell 1.95% and 2.94% respectively. The COLCAP index closed at 2,589 on Tuesday. Prediction markets suggest a 48.7% chance of a rate hike in October.

Colombia's government froze gasoline and diesel prices, costing over US$3B annually. Diesel prices rose 67% internationally but only 3% domestically, straining public finances. Ecopetrol, the state-controlled oil company, faces delayed payments, impacting cash flow. The fiscal deficit could reach US$1.875T by 2026, according to the Colombian Oil and Gas Association.

Colombia's diesel subsidy is nearing US$3 billion annually, with the government covering the gap between domestic and international prices. Ecopetrol, the state oil company, is affected as it sells fuel below market price and is later reimbursed. The government plans to end subsidies for private vehicles, aiming for savings of about US$217 million yearly. The subsidy's cost varies based on different reference prices and exchange rates.

Ecopetrol and Petrobras completed a $1B natural gas exploration campaign in the Colombian Caribbean, drilling five wells. Petrobras held 44.4% interest, Ecopetrol 55.6%. The campaign discovered new gas reserves, advancing understanding of the region's potential. Both companies aim to boost Colombia's gas supply.

Colombia's government canceled a planned gasoline price increase of COP 46 (US$0.014) per gallon in October 2026, keeping the price at COP 15,886 (US$4.87). President Abelardo de la Espriella ordered the reversal, with the state covering the COP 8.3 billion (US$2.5 million) cost. The decision impacts Ecopetrol, Colombia's state oil company, which trades in New York under the ticker EC.