Energy stocks rally on higher crude price as war enters third week
Make us a preferred source
Make us a preferred source on Google
The news: Energy stocks paced ASX 200 gains in afternoon trade after Iran and Israel traded strikes on key energy facilities in the Middle East, complicating US efforts to stabilise oil prices as the conflict entered its third week.
Viva Energy (+15.40%), Yancoal (+8.81%), Woodside Energy (+6.36%), Karoon Energy (+4.46%) and Santos (+3.47%) were among the top performing stocks across the ASX 200 at 2:19pm AEDT. Brent Crude rose 3.64% to USD111 ($158) per barrel.
The context: Oil prices have risen about 50% since the start of the war, disrupting regional supply as the Strait of Hormuz closed to shipping, and oil and gas production was halted.
The world’s largest liquefied natural gas export facility located in Qatar’s Ras Laffan suffered “extensive damage” following an overnight Iranian attack. Qatar’s foreign ministry described the assault as “a dangerous escalation and “a flagrant violation of state sovereignty”.
The strikes followed a warning from Tehran hours earlier that energy facilities in Gulf countries would be considered “legitimate targets” after Israel attacked a key gas field in Iran.
This is in addition to Donald Trump waiving a long-standing shipping mandate in a bid to lower the cost of transporting oil, gas and other commodities across the US, as policymakers seek to slow the rapidly rising energy prices.
The source: Bloomberg
