Energy stocks weigh on the ASX as global oil prices tumble
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The news: Oil and gas stocks weighed on the ASX in morning trade, as oil prices tumbled due to easing tensions in the Middle East.
The numbers: The energy sector was the only sector on in the red, down 0.92% by 11:45am AEST, with Karoon Energy (-4%), Woodside Energy (-1.5%) and Santos (-0.3%) leading declines on the ASX.
Brent futures fell USD0.63 ($0.98), or 0.72%, to USD86.66 a barrel, while US West Texas Intermediate (WTI) crude fell USD0.28, or 0.34%, to USD82.86 a barrel.
The context: Oil prices lowered after Israel and Iran down played the risks of an escalation of hostilities in the Middle East after Israel struck targets near the Iranian city of Isfahan on Friday.
Last week, both global oil benchmarks posted their biggest weekly losses since February, after Brent crude briefly jumped above USD90 a barrel on news of Israel's air strike in Iran.
Elsewhere, new data released by US Energy Information Administration last week showed that US crude inventories rose by 2.7 million barrels, nearly double analysts' expectations of a 1.4 million barrel rise, Reuters reported.
The sources: Reuters, US Energy Information Administration
