Energy sector gains as Russia-Ukraine tensions boost oil prices
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The news: Energy was the best performing sector on the ASX as escalating tensions in the Russia-Ukraine war steadied benchmark oil prices.
The numbers: The energy sector, one of only two sectors in green by 2:20pm AEDT, was up 0.12% as the wider market lowered 0.15%. Oil and gas heavyweights Woodside Energy (0.6%), Beach Energy (0.6%), Karoon Energy (0.4%) were all trading higher, as Santos (-0.7%) and Ampol (-0.2%) fell.
Global oil benchmark Brent added 0.4% to USD73.10 ($112.22) a barrel, while US West Texas Intermediate dropped 0.63% to USD68.95.
The context: Ukraine fired British-made Storm Shadow missiles into Russia for the first time overnight, targeting military sites in the Kursk region.
The strikes on Wednesday came as the US said it will give anti-personnel landmines to Ukraine to bolster its defences, and a day after Ukraine used US Army Tactical Missile System (ATACMS) missiles against Russia, reportedly authorised by President Joe Biden.
Russian authorities said the use of Western weapons to strike Russian territory far from the border would be a major escalation in the conflict.
Meanwhile, US crude stocks rose by 545,000 barrels to 430.3 million barrels last week compared to analysts' expectations for a 138,000-barrel rise recorded in a Reuters poll, pointing to reduced demand.
The source: Reuters
