ASX oil stocks rise on fears of escalation in the Middle East
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The news: Santos, Ampol and Woodside Energy led gains by energy majors on the ASX as oil prices rose on fears of widening conflict in the Middle East.
The numbers: Global benchmark Brent crude was up 30 US cents, or 0.37%, to USD80.59 ($122.89) per barrel by 2:25pm AEST. West Texas Intermediate (WTI) crude rose 21 US cents, or 0.27%, to USD77.27 per barrel.
Last week, Brent lost 1.8% while WTI fell 3.7% on softening Chinese demand and as hopes of a ceasefire in Gaza gained momentum, according to Reuters.
In the local market, oil majors Santos (1.8%), Ampol (1.6%), Woodside (1.3%) and Karoon (0.1%) were all trading higher, while Beach Energy was down 0.7%. The wider energy sector was up 1.07% as the ASX 200 had gained 0.83%.
The context: Rising expectations of a ceasefire in the Middle East were dashed over the weekend, following a rocket strike in the Israeli-occupied Golan Heights on Saturday, whicvh prompted fresh buying in the crude market.
However, concerns over oil's demand outlook continue, as data released earlier this month showed that China — the world's biggest crude importer — recorded an 11% drop in total fuel oil imports in the first half of 2024. Meanwhile, the US increased its number of oil and natural gas rigs — an indicator of future output — by the the biggest monthly uplift since November 2022.
The source: Reuters
