Shares gained 2.2 percent to 4,465 pesos at 12:51 p.m. in Bogota, which would be the highest on a closing basis since April 11. Ecopetrol was the biggest contributor to a 1.1 percent gain in the Colcap index.
Oil reached a two-year high on speculation the conflict in Syria will threaten supplies from the Middle East. West Texas Intermediate oil climbed 1 percent to $110.07 a barrel in New York after jumping as much as 3 percent earlier in the day.
The correlation between oil prices and Ecopetrol shares means there’s an “upside risk to the stock under a bullish oil price scenario,” HSBC Holdings Plc analysts led by Luiz Carvalho wrote in an Aug. 26 report. “Ecopetrol is one of the most oil-leveraged names worldwide.”
Ecopetrol shares have an R squared of 0.66 to rising oil, a measure of the stock’s movements that can be explained by crude prices, according to the HSBC report. A coefficient of 1 represents perfect correlation.
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