ASX oil majors trading lower as oil prices extend losses
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The news: Oil prices extended last week's losses as softening demand in China is raising concerns, with each of Australia's biggest oil majors trading lower on the ASX.
The numbers: Brent futures fell 66 cents, or 0.8%, to USD81.42 ($123.17) a barrel at 2pm AEDT, while US West Texas Intermediate (WTI) dropped 68 cents, or 0.87%, to USD77.33. Both benchmarks fell last week, with Brent down 1.8% and WTI 2.5%.
In the local market, Woodside Energy (-2.4%), Santos (-2%), Ampol (-2.14%), Origin Energy (-1%), Viva Energy (-2.01%) and Beach Energy (-2.5%) were all trading lower at 2pm AEDT.
The context: While China's imports of crude oil rose in the first two months of 2024 compared to the prior corresponding period, it was weaker compared to the preceding months. The impact on oil prices by softening purchases by the world's biggest buyer has been partially offset by heightened geopolitical risk due to ongoing conflicts in Gaza and Ukraine.
Last week, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, agreed to extend voluntary oil output cuts of 2.2 million barrels per day into the June quarter.
The source: Reuters
