Energy sector drops 1%, then trims losses, as oil producers slide
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The news: The energy sector shed more than 1% on the ASX before paring some losses, with Australia's largest oil companies dragging despite an increase in global crude prices.
The numbers: Oil majors Woodside Energy (-2%), Ampol (-1.8%), Beach Energy (-1.1%), Karoon Energy (0.5%) and Santos (-0.1%) were all trading lower by 2pm AEDT.
Energy — down 0.4% having dropped more than 1% earlier in the session — was the market's worst performing sector.
Global crude benchmarks Brent (0.6%) and West Texas Intermediate (0.7%) were both higher.
The context: The latest oil advance came after the US tightened sanctions against Iran and Russia.
It followed a decline on Thursday after the International Energy Agency forecast a deepening supply surplus, driven by the escalating trade war and increased output by OPEC+ nations.
The source: Bloomberg
