Energy stocks advance as traders weigh Trump oil sanctions
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The news: Energy stocks gained on the ASX as oil prices edged up, boosted by risks to oil supply from a Donald Trump presidency and a hurricane emerging in the Gulf Coast.
The numbers: The energy sector was up 1.6% by 1:50pm AEDT, as oil and gas majors Karoon Energy (4.2%), Beach Energy (2.2%), Santos (2%), Woodside Energy (1.9%) and Ampol (1.2%) all notched gains.
Brent crude was up 0.75% to USD75.48 ($114.21) a barrel, while US West Texas Intermediate rose 0.64% to USD72.15.
The context: Traders weighed concerns around a Trump presidency squeezing oil supply from Iran and Venezuela as well as a building storm in the Gulf Coast, Reuters reported.
Trump's election had initially pushed oil prices lower, driven by a strengthening US dollar. However, expectations that Trump will reimpose his "maximum pressure policy" of sanctions on Iranian oil, as well as harsh sanctions on Venezuelan oil, saw benchmark prices rally.
In North America, Hurricane Rafael was upgraded to a category 3 hurricane on Wednesday, with around 17% of crude oil production in the US Gulf of Mexico shut in response.
The source: Reuters
