Energy stocks lower after OPEC slashes demand forecasts
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The news: Energy stocks lowered on the ASX after OPEC cut its global oil demand growth forecasts overnight, sending benchmark prices tumbling.
The numbers: Oil and gas majors Beach Energy (-2%), Woodside Energy (-1.9%), Ampol (-1.7%) and Santos (-1.5%) were all trading lower by 1:45pm AEDT.
Energy, down 1.26%, was the worst performing sector as the wider market added 0.9%.
Brent crude, the global benchmark, was down 2.84% to USD75.26 ($111.83) a barrel, while West Texas Intermediate slid 2.95% to USD71.65.
Oil prices fell over 2% overnight after the Organization of Petroleum Exporting Countries (OPEC) cut its global oil demand growth forecast for 2024 and 2025, its third consecutive downward revision, primarily due to weaker Chinese demand.
The context: OPEC's weaker demand forecast was driven by China’s economic slowdown, falling oil imports and a shift towards cleaner energy. The price fall also followed weak inflation and trade data in China, which signalled sluggish domestic amid Chinese officials' talk of stimulus.
