ASX oil majors fall as weak US demand weighs on oil prices
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The news: Oil majors lowered in morning trade on the ASX as oil prices extended losses, weighed down by signs of weak US demand.
The numbers: Global benchmark Brent crude was down 71 US cents, or 0.96%, to USD72.94 ($107.97) a barrel by midday AEST.
West Texas Intermediate was down 72 US cents, or 1.02%, to USD70.19.
In the local market, oil and gas majors Karoon Energy (-2%), Ampol (-1.3%), Beach Energy (0.9%) and Santos (-0.2%) were all trading lower, while Woodside Energy added 0.5%. The wider energy sector rose 0.48% as the ASX 200 dipped 0.03%.
US gasoline demand dropped further below 9 million barrels and jet fuel consumption ebbed for the third straight week, according to Energy Information Administration figures, reported by Bloomberg.
The context: Fresh concerns over US demand offset a steep interest rate cut by the US Federal Reserve, which was expected to bolster oil prices. They also outweighed escalating tensions in the Middle East, where Israel's Defense Minister Yoav Gallant declared a "new phase" in the war with regional Islamist groups and said troops would be diverted to the Lebanese border.
The source: Bloomberg
