Energy stocks slide as Iraq, Russia seek larger oil exports
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The news: ASX 200 energy stocks fell by more than 2% this morning before paring some losses, as the prospect of increased oil supply from Iraq and Russia weighed on global crude prices.
The numbers: Energy, down 1.3%, was the second worst performing sector at 11:45am AEDT. Only financials (-2%) were lower, while the broader ASX 200 was down 0.7%.
Woodside Energy — which reported a decline in group reserves this morning — led the selloff, down 2.3% after dropping more than 3% earlier in the session. Fellow oil and gas majors Karoon Energy (-1.1%), Santos (-0.7%) and Beach Energy (-0.2%) were all lower while Ampol (0.1%) edged higher.
Brent crude was down 0.4% to USD74.46 a barrel, while West Texas Intermediate fell 0.5% to USD70.40.
The context: Global crude prices declined after the president of Iraq’s semi-autonomous Kurdistan region, Nechirvan Idris Barzani, talked up the resumption of oil exports next month after an almost two-year shutdown, Bloomberg reported.
Meanwhile, a possible resolution in peace talks over the war in Ukraine, which may take place as early as this month, could affect the size of Russian oil exports, currently under sanction from numerous countries.
The source: Bloomberg
