Shares of Petroleo Brasileiro SA Petrobras (PBR) plunged 8.26% in intraday trading, significantly underperforming the broader energy sector. The steep decline comes as energy stocks face pressure from falling oil prices and company-specific concerns surrounding Petrobras' Amazon drilling ambitions.

The energy sector as a whole experienced a downturn, with the Energy Select Sector SPDR Fund (XLE) declining 2.7% in premarket trading. This sector-wide trend was driven by a notable drop in oil prices, with US West Texas Intermediate crude oil falling 1.9% to $60.80 per barrel and Brent crude oil decreasing 1.8% to $64.39 per barrel. The broader market weakness in energy stocks has undoubtedly contributed to Petrobras' sharp decline.

Adding to the downward pressure on Petrobras' stock is the ongoing uncertainty surrounding the company's efforts to secure drilling permits in Brazil's environmentally sensitive Foz do Amazonas region. While Petrobras recently completed the construction of a wildlife care center in Oiapoque, Amapá state—a key requirement for obtaining drilling approval—the project still faces significant hurdles. Environmental concerns and regulatory scrutiny continue to complicate the approval process, potentially impacting investor sentiment towards the company's growth prospects in this promising oil frontier.