Energy stocks slide as oil prices fall on Venezuela shock
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The news: The energy sector was among the hardest hit in the Australian market, following a sharp decline in major oil stocks including Woodside Energy (-2.59%), Santos (-2.87%), Ampol (-1.75%), Beach Energy (-5.26%) and Karoon Energy (-3.97%).
The context: The declines followed a fall in oil prices after Donald Trump said Venezuela would be “turning over” up to 50 million barrels of sanctioned oil to the United States in the aftermath of the recent capture of Venezuelan President Nicolas Maduro.
According to Reuters, any deal between Venezuela and US officials would initially require the reallocation of cargoes originally bound for China.
The move came as Brent crude fell 1.02% to $60.08 a barrel, while US West Texas Intermediate crude declined 1.39% to $56.33 a barrel as of 2:20pm AEDT.
What they said: "This oil will be sold at its market price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!", US President Donald Trump said in a social media post on Tuesday New York time.
The source: Reuters
