Energy sector extends run as oil prices near 5-month high
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The news: The energy sector continued its recent advance on the ASX as oil prices held near a five-month high.
The numbers: Energy was the best performing sector by 2:40pm AEDT, rising 1.4% as the ASX 200 index lifted 0.3%.
Oil and gas producers Ampol (2.1%), Woodside Energy (0.9%), Santos (0.6%), and Beach Energy (0.5%) all rallied while Karoon Energy fell 1.2%.
Brent crude steadied near USD81 ($130.86) a barrel after soaring more than 5% over the last two sessions, while West Texas Intermediate held around USD79.
The context: On Friday, the US imposed its most aggressive sanctions yet on Russia's oil industry, targeting producers, exporters, insurance companies and over 150 tankers. Meanwhile, 10 European nations are also pushing for tougher curbs, Bloomberg reported.
The move by outgoing US President Joe Biden helped extend crude's recent rally, with gains also boosted by colder weather, declining US stockpiles and expectations of tighter US sanctions on Iranian oil by president-elect Donald Trump.
The source: Bloomberg
