Oil Fund Rises 1.9% but Latin American Oil Stocks Fall | Oil Wrap, Nov 5
Oil recovered on doubts the Iran war will end, but a Wall Street rout dragged Petrobras, YPF and Ecopetrol lower on Thursday, 5 November 2026. The post Oil Fund Rises 1.9% but Latin American Oil Stocks Fall | Oil Wrap, Nov 5 appeared first on The Rio Times .
Oil prices rebounded slightly on Thursday, November 5, 2026, following a heavy decline on Wednesday. Traders grew cautious about the outcome of the US midterm elections and the possibility of a quick end to the conflict with Iran, which had previously reduced global oil supplies. However, companies involved in oil production in Latin America experienced a decline in their stock prices.
Petrobras closed at US$18.80, Ecopetrol at US$15.54, and YPF at US$38.66. The sharp fall in US stock markets pulled funds out of emerging markets, indicating that when markets panic, Latin American oil stocks are often the first to be affected. Oil prices rose by 1.93%, while global equities suffered a 4.36% decline, and the VIX, a measure of expected market volatility, surged 69.66% to 28.18.
The main reason behind the decline in Latin American oil stocks was the broader market fear, rather than the rise in oil prices themselves. This situation highlights that the situation is two-fold, with crude oil rebounding while the stock market remains in a state of fear. The oil-tracking fund closed at US$148.21, which is a representation of crude prices rather than the actual spot price.
Petrobras, Ecopetrol, and YPF were the most affected stocks, with YPF suffering the largest decline. Historically, when a commodity like oil has no spot feed, exchange-traded trackers or leading producers are used as proxies for that commodity. The decline in these stocks was due to the stock market rout, despite higher crude prices.
Investors in oil companies in Sao Paulo, Bogota, and Buenos Aires should monitor the VIX and the S&P 500 to determine if the market stabilizes and the VIX falls from its current level of 28.18. If the VIX retreats and the S&P 500 steadies, Latin American oil shares should recover some ground. The oil fund's resistance level is 169.53, while the recent 5-session low area serves as support. A peace deal in the Iran conflict would likely push the oil fund lower, whereas renewed US strikes on Iran could lift it.
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