Shares of Petroleo Brasileiro SA Petrobras (PBR) plummeted 8.26% in Monday's trading session, as the energy sector faced broad-based selling pressure and oil prices declined. The Brazilian state-run oil company's stock was caught in a wider market downturn that saw energy stocks retreat across the board.

The steep drop in Petrobras shares came as West Texas Intermediate crude oil futures fell 1.9% to $60.80 per barrel, while Brent crude declined 1.8% to $64.39 per barrel. The Energy Select Sector SPDR Fund (XLE), a key indicator of energy sector performance, was down 2.7% in premarket trading, signaling a challenging day for oil and gas companies.

While Petrobras announced it had received a license to operate a fauna care and rehabilitation unit in Brazil's Amapa state - a step towards obtaining approval for a planned offshore drilling project - investors seemed more focused on the broader market trends. The completion of this wildlife center, though a positive development in the company's efforts to secure environmental clearance for drilling in the Foz do Amazonas region, did not offset the negative sentiment driven by macroeconomic factors. As Petrobras continues to navigate regulatory hurdles for its expansion plans, the market's reaction highlights the ongoing challenges faced by energy companies in balancing growth ambitions with environmental concerns and market volatility.