U.S.-traded shares of Petrobras hit an all-time Monday as the price of crude oil spiked, a week after the Brazilian state-run oil company said it found what may likely be one of the world's largest oil reserves.
The stock gained $3.33, or 2.7 percent, to close at $128.82. Earlier in the session, shares hit an all-time high of $129.40.
Light, sweet crude for May delivery rose to a record $117.60 a barrel on the New York Mercantile Exchange before falling back to settle $117.48, up 79 cents.
The stock jump comes even after Lehman Brothers analyst Paul Cheng cut his estimates, citing Petrobras's lower-than-expected first-quarter production.
Petrobras said average production during the period was 1.8 million barrels of oil per day, compared with Cheng's 1.9 million barrels of oil per day forecast, he said. As a result, Cheng cut his 2008 production expectation to 1.9 million barrels of oil per day from 2 million barrels of oil per day.
Cheng also reduced his first-quarter earnings estimate to $1.60 per ADR from $1.71 per ADR. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
Elsewhere in the emerging markets oil and gas sector, shares of China Petroleum & Chemical Corp. added $9.36, or 10.3 percent, to $100.56, shares of PetroChina Co. Ltd. increased $8.88, or 7 percent, to $135.03. Meanwhile, shares of South Africa's Sasol Ltd. jumped $1.05 to $57.93, and hit a fresh 12-month high of $58.42 earlier in the session.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in China, Mexico, Brazil and more _ added 4.36 points to 371.10. The Bank of New York Composite ADR Index gained 0.94 points to 181.30 as the U.S. markets ended mixed in Monday trading.
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