Ampol leads oil rally as crude prices edge up
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The news: Ampol led a rally by oil and gas producers in morning trade on the ASX as global benchmark prices steadied.
The numbers: Ampol (3.9%), Santos (1%), Karoon Energy (0.4%), Woodside Energy (0.3%) and Beach Energy (0.2%) were all trading higher by 11:20am AEDT. The energy sector added 0.51% as the wider market advanced 0.62%.
Brent crude rose 0.1% to USD72.39 ($111.82) a barrel while West Texas Intermediate climbed 0.13% to USD68.86.
The context: Supply risks eased in the Middle East after a 60-day ceasefire was agreed between Israel and Lebanese militant group Hezbollah.
However, oil prices were bolstered by a forecast drop in US stockpiles and an expected delay to production increases by the Organisation of the Petroleum Exporting Countries and allies led by Russia (OPEC+), Bloomberg said.
The American Petroleum Institute reported that US crude inventories shrank by 5.9 million barrels last week, the largest decline since August if confirmed by government figures.
Meanwhile, OPEC+ is expected to delay a planned increase to production ahead of its meeting this weekend.
The source: Bloomberg
