"A lot of these countries that produce oil are not net producers because they have to also import oil and other chemicals to refine oil and even after refining, they have to import gasoline as well. So the bill at the government level is not always a positive one," said Eduardo Ordóñez Bueso, an emerging markets debt portfolio manager at BankInvest.
Latin America has been relatively shielded from the Mideast conflict, compared with broader emerging markets, given that most countries in the region are energy producers.
However, energy prices staying at current levels for a prolonged period could weigh on economic growth, push up consumer inflation and prompt central banks to hike interest rates.
On Thursday, Brazilian oil giant Petrobras PETR4.SA advanced 1.7%, while Argentina's YPF YPFDm.BA and U.S.-listed shares of Ecopetrol EC.N were marginally higher.
Data showed the region's second-largest economy, Mexico, contracted in May from April.
Separately, the annual inflation rate decelerated for an eighth consecutive fortnight in early July, although market participants will be keen to see how the recent spike in crude prices adds to price pressures in the months ahead.
Mexico's stocks benchmark .MXX edged 0.5% lower, while the peso MXN= dropped 0.8%.
Investors were also keeping a keen eye on developments in Brazil after a U.S. tariff rate of 25% took effect on Wednesday and the country braced for duties going up by 12.5% following the verdict of a U.S. forced labor probe.
The real slipped 0.5%, while the Bovespa index .BVSP trod water as Petrobras' gains limited losses.
Peru's sol PEN= was flat, while Colombia's peso COP= dropped 0.5%. Equities in the two countries .MXNUAMPESCPGPE were down 1% and up 0.7%, respectively.
ILF•
