Shares of Brazil's Petrobras soar on news of huge new natural gas discovery

Shares of Brazil's state-run oil company soared Tuesday, a day after the company announced it discovered a huge natural gas reserve off the coast of Rio de Janeiro.

Petrobras shares skyrocketed 9.3 percent on Sao Paulo's Bovespa exchange in afternoon trading, substantially higher than the 4.5 percent gain for the exchange's main index one day after steep losses brought on by fears of a U.S. recession.

In New York, the company's American depository shares were up 1.3 percent, or US$1.27 (euro0.88) to US$95.64 (euro65.99).

Petroleo Brasileiro SA said late Monday that the potential reserves in the new field were located about 5,100 meters (16,800 …