Energy shares rally as oil prices jump
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The news: The energy sector was the ASX's best performer in afternoon trade as oil prices extended gains due to potential tighter supply following further sanctions on Iran’s oil exports by the Trump administration.
The numbers: Energy stocks were 3.94% higher at 3:05pm AEST while the wider ASX 200 was up 0.59%.
The best performers were Karoon Energy (7.23%), Ampol (6.73%), Beach Energy (4.2%), Woodside (3.73%) and Viva Energy (4.43%).
Brent crude futures had risen 1.08% to USD66.56 a barrel while US West Texas Intermediate crude gained 1.34% to USD63.31 a barrel.
Woodside also announced today that it had signed a liquefied natural gas supply deal with Germany’s Uniper.
The context: On Wednesday, US Treasury Secretary Scott Bessent said the country would apply maximum pressure to disrupt Iran’s oil supply chain, while a second Chinese refinery was sanctioned after it allegedly handled over USD1 billion ($1.58 billion) worth of Iranian crude.
The oil price rally has also been a result of shorts covering and a weaker US dollar leading to cheaper crude oil, Reuters reported.
