ASX oil majors climb as US growth data boosts crude prices
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The news: A rise in global oil prices pushed ASX energy majors higher today, after stronger-than-expected economic data in the US heightened expectations for increased oil demand.
The numbers: Global benchmark Brent crude was up 21 US cents, or 0.25%, to USD81.60 ($124.59) per barrel by 12:50pm AEST. West Texas Intermediate crude rose 21 US cents, or 0.27%, to USD78.49 per barrel.
In the local market, energy was the second-best performing sector, adding 1.49%. Oil majors Karoon Energy (5.5%), Beach Energy (1.9%), Ampol (1.7%), Santos (1.7%), and Woodside Energy (0.7%) were all trading higher.
The context: New data overnight showed that US economic growth surged more than expected in the second quarter, with GDP increasing at a 2.8% annualised rate, twice the 1.4% rate in the first quarter.
Inflation pressures also eased, raising expectations of cuts to interest rates by the Federal Reserve, a move that would be expected to spur oil demand.
However, oil price movements were tempered by concerns about soft economic conditions in China and Japan, Reuters reported. The world's biggest crude importer, China, conducted an unscheduled lending operation on Thursday at steeply lower rates, a sign that heavier monetary stimulus is required to support the economy.
The source: Reuters
