* Brazil" real erases losses, up 0.3% * Colombian risk premium set to rise - cenbank * Brazil"s Cielo rallies as Q3 profit doubles (Adds details, updates prices throughout) By Susan Mathew Nov 4 (Reuters) - Colombia"s peso slipped on Thursday after oil prices slid following a report that Saudi Arabia"s will raise its oil output, while the Peruvian sol held its ground after a blockade in the country"s largest copper mine was lifted. The peso dropped 1% against a firming dollar as oil prices were slammed on a report that Saudi Arabia"s oil output will soon surpass 10 million barrels per day for the first time since the outset of the COVID-19 pandemic. Colombia"s central bank said the country"s risk premium will rise this year and next to above its average for the last 15 years as an increase in its macroeconomic imbalances and stress on international financial markets weigh. Meanwhile, minutes of Colombia"s last central bank meeting showed members decided unanimously to continue to normalize monetary policy, although there were dissenting views regarding the pace of this process. "The wording of the minutes, and our expectation that inflation pressures are likely to persist in the near-term, support our view of consecutive hikes of 50bps in each of the next four monetary policy meetings; this implies a policy rate at 3.0% by year-end," Credit Suisse analyst Alberto J. Rojas said. The sol firmed 0.2% on hopes that miners could resume copper production at the Antamina mine. Peru is the world"s second largest copper producer and the protests had sent the currency to three-week lows. A surge in copper prices also helped the currency on Thursday. Meanwhile, weakness in the pound and euro following the Bank of England"s decision to keep rates unchanged, saw the dollar firm. Brazil"s real eased 0.5%, after a strong session on Wednesday following hawkish Brazilian central bank minutes. With food prices on the rise - the FAO global food price index hit a 10 year high - EM central banks have adopted tightening cycles to stave off inflation, but the aggressive pace, especially in some economies like Brazil, runs the risk of choking economic growth. Data on Thursday showed industrial production in Brazil fell a more than expected 0.4% in September from August, but separate data showed Brazil"s October Services PMI rose from a month earlier. In a boost on the climate front, the Climate Investment Funds said Ukraine, Fiji, Colombia, Kenya and Mali will be the first countries to benefit from an investment program that will help developing countries transform their power grids to carry growing levels of renewable energy. Among stocks, banks led Brazil"s Bovespa stocks index lower with Itau Unibanco sliding 2.8% despite a 35% jump in third-quarter profit. Payments company Cielo surged 9.1% after its quarterly profit more than doubled. Chile"s IPSA index jumped 3.8% to six-week highs, while Mexico"s IPC index remained flat. Key Latin American stock indexes and currencies at 1945 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1267.27 0.38 MSCI LatAm 2120.56 -0.71 Brazil Bovespa 103677.09 -1.84 Mexico IPC 51915.37 0.07 Chile IPSA 4473.40 3.79 Argentina MerVal 91019.82 -1.167 Colombia COLCAP 1392.70 -0.84 Currencies Latest Daily % change Brazil real 5.6147 -0.48 Mexico peso 20.5560 -0.13 Chile peso 814 -0.16 Colombia peso 3866.34 -1.00 Peru sol 4.0005 0.09 Argentina peso (interbank) 99.9500 -0.03 Argentina peso (parallel) 196 1.53 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru Editing by Frances Kerry, Elaine Hardcastle)