ADRs in Focus: Latin American oil stocks fall

American Depositary Receipts of oil companies based in Latin America fell sharply Wednesday as the price of oil eased on the New York Mercantile Exchange.

Light, sweet crude for July delivery fell $1.45 to $122.86 per barrel in afternoon trading after earlier falling as low as $121.84. The drop came as U.S. Energy Department reported Wednesday that demand for gasoline in the U.S. fell last week, while gasoline inventories rose by more than 2.9 billion barrels, which was greater than analysts had expected.

Oil companies' shares often trade alongside the price of oil, and Latin American oil ADRs traded lower Wednesday afternoon. ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.

Brazil's state-owned Petroleo Brasileiro SA lost $2.97, or 4.4 percent, to $66.08. The company signed a four-year deal with Texas-based Tetra Technologies Inc. in which Tetra will provide services on wells off the Brazilian coast, Tetra said Wednesday. The terms were not disclosed.

Argentina's Petrobras Energia Participaciones fell 74 cents, or 5.3 percent, to $13.35. Natural gas transporter Transportadora de Gas del Sur SA lost 6 cents to $3.94.

The broader ADR market was lower Wednesday. The Bank of New York Latin America ADR Index fell 9.54 points, or 2 percent, to 474.35.

The Bank of New York Composite ADR Index gave up 2 points to 177.69.