Ampol and Woodside lead energy rally as fresh tariff threats push prices higher
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The news: Energy stocks advanced amid broad declines across the rest of the market, as uncertainty around the US government's tariff threat to buyers of Venezuelan oil and impending US duties on car imports pushed global crude prices higher.
The numbers: Energy, up 0.9%, was the best performing sector at 3:30pm AEDT, as the ASX 200 fell 0.6%.
Oil producers Ampol (1.5%), Woodside Energy (0.9%) and Santos (0.9%) were all trading higher. Their smaller rivals Karoon Energy (-1.4%) and Beach Energy (-0.3%) lowered.
Global benchmarks Brent and West Texas Intermediate were both up around 0.2% at USD73.17 and USD69.78 per barrel respectively.
The context: The latest rise in oil prices followed a 1% advance on Wednesday, after new data showed US crude oil and fuel inventories fell last week, Reuters reported.
Prices were also bolstered after US President Donald Trump threatened to punish any nation buying crude from Venezuela, with traders wary of possible supply disruptions as a result of the move.
Trump also said he would impose a 25% tariff on imported finished cars and trucks from next week. Some analysts believe this may ultimately support crude prices, triggering increases to new car prices in the US and slowing the country's transition to more fuel-efficient models.
The source: Reuters
