Oil Wrap: Iran Supply Fears Lift Crude; YPF Slips
WTI and Brent hit three-week highs as Iran vows to keep the Strait of Hormuz closed. Petrobras dips, YPF retreats after Monday's surge. The post Oil Wrap: Iran Supply Fears Lift Crude; YPF Slips appeared first on The Rio Times .
Iran's declaration that it would keep the Strait of Hormuz closed and adopt a more offensive stance sent crude prices soaring on Tuesday. This prompted the United States to announce it would not extend the ceasefire with Iran, leading to both Brent and WTI settling at their strongest levels since mid-July. The USO fund, which tracks WTI futures, rose 0.28% to US$130.66 in New York trading.
However, Latin American producer equities were not as bullish, with Petrobras falling 0.38% to US$18.18 and YPF dropping 3.83% to US$50.68. Ecopetrol, a Colombian state producer, showed minimal movement, up 0.06% to US$17.68. The split between crude prices and producer equities highlights that investors are focusing on company-specific stories rather than just the broader market trend.
Brazil remains a supplier growth story, while Argentina's YPF is characterized by volatility due to its Vaca Muerta shale story and potential offshore drilling in Uruguay. Mexico and Venezuela's state-run systems are unable to respond quickly to higher prices, making them less responsive to crude price changes.
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