Shares of energy companies surged alongside oil futures, which hit their highest level in more than a year.
Oil futures topped $61 a barrel in New York for the first time since the early onset of the coronavirus pandemic back in January of last year, as traders watched efforts to get the Texas' power grid and energy production complex back online. One brokerage said the outlook for U.S. economic growth has brightened recently. This year promises to be a "year of exceptional growth thanks to the consumer," said economists at brokerage Bank of America Global Research, who boosted their projection for 2021 economic growth to 6.5%. "There are three reasons for optimism: likelihood of a larger stimulus package, better news on the virus front and encouraging economic data."
U.S.-listed shares of Petroleo Brasileiro, known as Petrobras, lost about one-fifth of their value after the company disclosed received a letter from the Ministry of Mines and Energy, requesting the company replace Chief Executive Roberto da Cunha Castello Branco with Joaquim Silva e Luna, an army general, in a response to Brazil President Jair Bolsonaro's concerns about price hikes for oil and gas. Shares of Petrobras's Argentinian peer YPF, which has been subject to political pressure in the past, fell in sympathy.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-22-21 1704ET
