ASX energy stocks slump as China data weighs on oil prices
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The news: The energy sector led declines on the ASX today, after concerns about demand in China dragged down global oil prices.
The numbers: Brent futures was down 26 US cents, or 0.31%, to USD82.53 ($125.14) a barrel at 2:30pm AEST, while US West Texas Intermediate (WTI) dropped 20 US cents, or 0.26%, to USD78.06.
In the local market, energy lost 0.76%, with oil and gas majors Karoon Energy (-3.2%), Viva Energy (-1.7%), Santos (-1.3%) and Woodside Energy (-1%) all trading lower.
The context: Weaker-than-expected credit and inflation data in China over the weekend suggested the country is struggling to lift demand, Bloomberg reported.
Meanwhile, Iraqi oil minister Hayyan Abdul Ghani announced that his country had cut production enough and wouldn't agree to further cuts — but backtracked to say the second-biggest producer among the Organization of the Petroleum Exporting Countries (OPEC) would stick to any decision made by the group.
OPEC is due to deliver its market outlook on Tuesday, with traders expecting the group to extend output curbs into the second half.
The source: Bloomberg
