Oil majors climb on ASX after crude nears two-month highs
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The news: Oil and gas majors climbed on the ASX after crude traded close to two-month highs on signs of a drawdown on US stockpiles.
The numbers: Energy stocks Karoon Energy (1.7%), Beach Energy (1.5%), Santos (0.9%), Woodside Energy (0.3%) were all up by 2pm AEST, as the wider energy sector gained 0.83%.
Brent crude added 0.54% to reach USD86.71 ($129.83) a barrel by 2pm AEST, while US West Texas Intermediate (WTI) rose 0.50%, to USD83.22.
The American Petroleum Institute said crude inventories shrank 9.2 million barrels last week, people familiar with the data told Bloomberg. If confirmed later today, this would be the largest drop in barrel terms since January.
The context: Crude futures have been buoyed by a wider risk-on mood in equity markets, as the US benchmark S&P 500 reaches record heights.
Geopolitical risks — including current elections in France and the UK, as well as escalations of war in the Middle East — have helped boost oil prices, while they have also been supported by anxiety related to a potentially active hurricane season.
The source: Bloomberg
