Karoon, Santos, Woodside stocks rise after oil price surge
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More news: Energy stocks climbed on the ASX after supply risks posed by Hurricane Milton in the US and continued conflict in the Middle East pushed oil prices higher overnight.
Energy, up 0.58%, was the best performing sector by 1:40pm AEDT while the wider ASX 200 was down 0.13%.
Oil and gas majors Karoon Energy (2.3%), Santos (0.9%) and Woodside Energy (0.8%) traded higher as Ampol (-0.9%) and Beach Energy (0.2%) fell.
Brent crude lowered 0.59% to US$78.93 ($117.07) per barrel, while West Texas Intermediate dropped 0.54% to US$75.44.
Oil prices jump on US inflation, Israel-Iran fears
The news: Oil prices jumped overnight on a spike in US fuel use before Hurricane Milton barrelled across Florida, Middle East supply risks and signs that demand for energy could grow in the US and China.
The numbers: Benchmark Brent crude futures rose 3.7% to settle at USD79.40 a barrel, while US West Texas Intermediate (WTI) crude rose 3.6%, to settle at USD75.85.
The context: In the US, the world's largest oil producer and consumer, Hurricane Milton barrelled across Florida, where about a quarter of fuel stations sold out of petrol as the storm also knocked out power to more than 3.4 million homes and businesses, which will likely affect supplies well into next week.
Crude benchmarks spiked earlier this month after Iran launched more than 180 missiles against Israel on 1 October, raising the prospect of retaliation against Iranian oil facilities. With Israel yet to respond, crude benchmarks remained relatively flat through the week but investors remain wary, given Israeli Defence Minister Yoav Gallant promised that any strike against Iran would be "lethal, precise and surprising".
In a move that could boost oil demand in the world's second biggest oil consumer, China published a draft law aimed at promoting the development of the private sector, the country's latest step to boost investor confidence amid an economic slowdown. Meanwhile, in the US, markets grew more confident the Federal Reserve would cut interest rates in November. Lower interest rates decrease borrowing costs for consumers and businesses, which can increase economic growth and demand for oil.
The source: Reuters
