Key Facts
- USO fell 4.58% to US$126.15 as the WTI-tracking fund absorbed a second straight session of heavy losses on Tuesday, August 25.
- WTI settled near US$82.05 a barrel, down 3.5%, and Brent near US$88.35, down 4.1%, at the 4 p.m. New York close.
- Traders shrugged off new US sanctions on Iran announced on Monday, judging them less risky to Middle East supply than military escalation.
- US inventories surprised after the American Petroleum Institute estimated a 4.2 million-barrel build — more than double the 1.9 million analysts expected.
- Petrobras ended at US$17.85 in New York; the shares went ex-dividend on Tuesday (US$0.53 per ADR), so the underlying drop was only about 1.2%.
- YPF fell 2.48% to US$50.01 and Ecopetrol slid 3.12% to US$16.79, tracking global crude rather than company news.
Today’s Focus
Crude fell hard for a second straight session on Tuesday, August 25, and Latin America’s oil shares fell with it. The WTI-tracking USO fund closed at US$126.15, down 4.58%.
Two forces did the damage. Investors decided the new US sanctions on Iran announced Monday posed less supply risk than feared, and the American Petroleum Institute estimated US crude stocks rose 4.2 million barrels in the week to August 21, well above the 1.9 million expected.
Petrobras ended at US$17.85 in New York, Ecopetrol at US$16.79 and YPF at US$50.01. All three moved with the global market, not on local news.
What matters today. A two-day slide in crude, driven by fading supply fear and a surprise jump in US stockpiles, dragged Latin America’s oil names lower despite strong regional fundamentals.
01 The session in one read
Oil prices fell sharply on Tuesday, August 25, as fading fear over Middle East supply and a bearish US inventory estimate pulled the crude market lower. WTI settled near US$82.05 a barrel, down 3.5%, and Brent near US$88.35, down 4.1%, at the 4 p.m. New York close.
That move cascaded through Latin America’s main oil shares. The WTI-tracking USO fund closed at US$126.15, down 4.58%, while Petrobras ended at US$17.85, Ecopetrol at US$16.79 and YPF at US$50.01.
The two-day slide reflects a market shedding the fear premium built up during the Iran conflict, not any deterioration in Brazilian, Argentine or Colombian fundamentals. A surprise US stock build added weight on Tuesday, and the official US inventory report on Wednesday will confirm or contradict it. If the build shrinks in the official data, part of this loss could come back quickly.
02 The board
The board told a uniform story: falling crude exacted a price from every major Latin American producer. Petrobras showed the biggest headline drop, but most of it was mechanical — the shares went ex-dividend on Tuesday, stripping out a US$0.53 per ADR payout.
Colombia’s Ecopetrol slid 3.12% to US$16.79, and Argentina’s YPF slipped 2.48% to US$50.01. None of the declines came from company-specific bad news.
| Asset | Level | Change |
|---|---|---|
| WTI crude (USO) | US$126.15 | -4.58% |
| Petrobras* | US$17.85 | -4.03% |
| Ecopetrol | US$16.79 | -3.12% |
| YPF | US$50.01 | -2.48% |
Sources: NYSE closing prices and futures levels at 4 p.m. ET, 2026-08-25, as reported by Investopedia and exchange data. *Petrobras went ex-dividend (US$0.53 per ADR) on Tuesday; its underlying decline was about 1.2%.
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Latin America — Cross-Market Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,576.80 | +1.55% | +21.85% | 171,906.72 | 168,310 | 167,142 | — |
| IPSA | 11,450.75 | -0.76% | — | 11,537.98 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 65,522.56 | -0.38% | +12.17% | 65,770.85 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,009,029 | +0.46% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,508.47 | -0.09% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 60,117.56 | +0.55% | — | — | — | — | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| USD/MXN | 17.06 | -0.24% | -8.58% | 17.10 | 17.08 | 17.01 | — |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| USD/COP | 3,140 | +0.03% | -22.04% | 3,139 | 3,141 | 3,105 | — |
| USD/PEN | 3.36 | -0.66% | -4.82% | 3.38 | 3.38 | 3.35 | — |
| USD/ARS | 1,493 | +0.10% | +12.96% | 1,491 | 1,494 | 1,480 | — |
| USD/UYU | 40.27 | +1.24% | +1.80% | 39.77 | 40.27 | 40.23 | — |
| USD/PYG | 5,939 | +1.68% | -19.54% | 5,841 | 5,939 | 5,925 | — |
| USD/BOB | 11.64 | -0.76% | +72.04% | 11.73 | 11.72 | 11.64 | — |
| USD/DOP | 58.34 | +1.25% | -3.44% | 57.62 | 58.34 | 58.04 | — |
| USD/CRC | 445.92 | +0.89% | -9.71% | 441.97 | 448.50 | 445.92 | — |
03 What moved it
The first force was psychological. Washington unveiled a new wave of sanctions on Iran on Monday, targeting 60 entities and individuals, and traders decided the measures — however tough — carry less risk to oil supply than the military escalation the market had feared.
The second force was arithmetic. The American Petroleum Institute estimated US crude inventories rose 4.2 million barrels in the week ending August 21, more than double the 1.9 million-barrel build analysts expected.
There is a floor under the market, though. Iran has threatened to retaliate against the sanctions, and shipping through the Strait of Hormuz — which carried about a fifth of the world’s oil before the conflict — remains well below normal.
04 The Latin American read
For Brazil, the slide overshadowed a symbolic milestone. Petrobras confirmed this month that its Tupi field in the pre-salt passed 4 billion barrels of cumulative output — the first field in the company’s 73-year history to reach that mark.
Petrobras is also looking beyond Brazil. Under a two-year cooperation agreement signed with Mexico’s Pemex in June, the two state companies are now evaluating deep pre-salt potential in Mexico’s largely unexplored Gulf waters.
Argentina’s YPF brought real fundamental strength into the session. Days earlier it reported record second-quarter adjusted EBITDA of US$2.80 billion, up 149% from a year earlier, with shale oil output up 47% at 213,000 barrels a day.
05 The names to watch
Petrobras remains the most globally liquid way to own Brazil’s pre-salt story, and an ex-dividend price of US$17.85 gives investors a cleaner entry point than the headline drop suggests.
YPF at US$50.01 is the purest listed exposure to Vaca Muerta, where the company aims to lift shale output to 250,000 barrels a day by December. Ecopetrol at US$16.79 offers Colombia exposure, though on Tuesday it traded purely as a proxy for crude.
06 The outlook
The next checkpoint is Wednesday’s official US inventory report from the Energy Information Administration. A figure well below the API’s 4.2 million-barrel estimate would undercut the bearish story.
Beyond the data, the question is whether Iran’s threatened retaliation stays rhetorical. For Latin America, the supply stories in Brazil’s pre-salt, Argentina’s shale and the new Petrobras–Pemex evaluation are unchanged — the region’s sensitivity to global crude remains the dominant short-term driver.
07 What to watch
- US official crude stocks: Wednesday’s government data will confirm or refute the API’s 4.2-million-barrel build; a smaller figure could reverse the bearish tone.
- Iran’s response: Any move beyond rhetoric against the new US sanctions would put supply risk back into prices.
- Petrobras–Pemex evaluation: Progress on deep pre-salt potential in Mexican Gulf waters would add a new cross-border supply story in Latin America.
- YPF’s shale ramp: Output growth toward the 250,000-barrel-a-day December target matters more for the stock than any single session of crude.
Frequently Asked Questions
Why did oil fall on Tuesday?
Investors decided the new US sanctions on Iran announced Monday carried less supply risk than feared, and the American Petroleum Institute estimated US crude stocks rose 4.2 million barrels in the week to August 21 — more than double what analysts expected.
Which Latin American oil share fell most?
In price terms Petrobras fell most, ending at US$17.85 in New York, but the shares went ex-dividend on Tuesday, so the underlying decline was only about 1.2%. Ecopetrol’s 3.12% fall was the largest pure market move.
Did Argentina’s YPF fall because of bad news?
No. YPF fell 2.48% with global crude, days after posting record second-quarter adjusted EBITDA of US$2.80 billion and 47% growth in shale oil output.
Is Brazil’s pre-salt story still intact?
Yes. Petrobras’s Tupi field passed 4 billion barrels of cumulative output this month — a first for the company — and its new evaluation of deep pre-salt potential offshore Mexico with Pemex points to growth beyond Brazil.
Market data: RT
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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