Energy stocks rise as oil prices extend gains

The news: Energy was the only sector in the green during morning trading on the ASX, after oil prices surged overnight as comments by US President Joe Biden fuelled speculation about potential Israeli strikes on Iran’s oil infrastructure in retaliation for missile attacks.

The numbers: The energy sector was up 1.51% by 1:10am AEST as the wider sector lowered 1.02%. Oil majors Karoon Energy (2.5%), Beach Energy (2.2%), Ampol (2%) and Woodside Energy (1.8%) made up four of the top five performing stocks across the ASX 200. Fellow oil producer Santos added 1%.

Brent crude, up 0.21% to USD77.78 ($113.54) a barrel, extended gains, as did US West Texas Intermediate, up 0.2% to USD73.86. Both benchmarks are on track for weekly gains of about 8%.

The context: While markets have started to price in the likelihood of supply disruptions in the Middle East, supply fears have been tempered by spare production capacity from the Organization of the Petroleum Exporting Countries (OPEC).