Energy stocks weigh on ASX despite oil price rally
Make us a preferred source
Make us a preferred source on Google
The news: Energy stocks lagged on the ASX despite oil prices climbing more than 1.5% in morning trading in response to delays to output hikes by the Organization of the Petroleum Exporting Countries and allies (OPEC+).
The numbers: Energy, down 0.49%, was the worst performing sector on the ASX by 12:25pm AEDT, as the wider market added 0.2%.
Oil and gas heavyweights Karoon Energy (-3%), Woodside Energy (-1%), Ampol (-0.6%) and Santos (-0.2%) were trading lower, while Beach Energy (0.2%) lifted.
Brent futures rose 1.52% to USD74.21 ($112.38) a barrel, while US West Texas Intermediate was up 1.6% to USD70.60.
The context: OPEC+ postponed its planned December output increase by a month amid weakening demand and strong supply from non-OPEC countries, keeping the current curbs to help stabilise prices.
The delay, the second time the production hike has been pushed back, comes in response to faltering demand, particularly from China and high output levels in the Americas.
The group, led by Saudi Arabia and Russia, will review its policies at a meeting scheduled for 1 December.
The sources: OPEC media release, Bloomberg, Reuters
