Bearish wagers on Petroleo Brasileiro SA, the oil producer embroiled in Brazil’s largest graft scandal, receded before the report of a record loss amid unprecedented writedowns. Short interest in its American depositary receipts was at an eight-month low of 11.4 percent of shares outstanding on Monday, according to data compiled by London-based Markit Ltd. and Bloomberg. “Investors bought Petrobras, betting on a change in government,” said Pedro Paulo Silveira, the chief economist at brokerage Nova Futura in Sao Paulo. “They just forgot to check the real situation, which remains very dire.”

Before it's here, it's on the Bloomberg Terminal. LEARN MORE