NEW YORK (TheStreet) -- Petrobras (PBR.A - Get Report) stock is advancing 8.02% to $5.79 in afternoon trading on Tuesday after a rise in the Brazilian currency boosted shares of Brazil-based companies.
The real is gaining after the head of Brazil's lower house, Waldir Maranhao, decided to not call for an annulment of the impeachment vote to remove President Dilma Rousseff from office, according to Bloomberg.
"We've returned to that market scenario in which Rousseff's replacement is almost a sure thing," Infinity Asset Management chief economist Jason Vieira told Bloomberg.
Petrobras, a state-run oil and gas company in Brazil, could be a key beneficiary if Rousseff is removed from her post. VP Michel Temer, the presumed successor, is expected to change policies that Rousseff implement and led to higher debt for Petrobras.
Shares of Petrobras are also benefiting from higher oil prices that were triggered by crude output disruptions in Canada and Nigeria, Reuters reports.
WTI crude is rising 3.11% to $44.79 per barrel on the New York Mercantile Exchange, while Brent crude is increasing 4.68% to $45.67 per barrel on the Intercontinental Exchange this afternoon.
Separately, Petrobras has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's weak return on equity, disappointing stock performance and generally high debt management risk.
You can view the full analysis from the report here: PBR.A
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.