Shares of Petrobras, Other Brazil Oil Companies Higher as Oil Prices Jump

By Jeffrey T. Lewis

SÃO PAULO--Petróleo Brasileiro SA's preferred shares were up 3.2% Monday, as a raft of Brazilian oil company stocks jumped after Saudi Arabia and other oil producers said they would cut production.

Petrobras shares reached 24.20 reais ($4.79), and were down 4.3% from the end of last year through Friday's close. 3R Petroleum Óleo e Gás SA shares rose 4.4% to BRL24.20 and Petro Rio SA shares increased 4.6% to BRL32.62. Brazil's benchmark Ibovespa stocks index was down 0.8% in late-morning trading.

Saudi Arabia and other members of OPEC surprised markets Sunday by saying they would reduce output by more than a million barrels a day, starting May.

On Monday, the price of a barrel of oil was on track for its biggest single-day jump in close to a year, with the most actively traded futures for Brent crude up 6.2%.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

04-03-23 1104ET