ASX oil stocks edge up as crude prices reverse gains
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More news: Energy stocks edged higher on the ASX despite oil prices reversing early gains on Wednesday, after early poll results in the US election projecting a tight race between presidential candidates Kamala Harris and Donald Trump.
US West Texas Intermediate (WTI) crude lost 28 US cents, or 0.39%, to trade at US$71.71 ($108.78) per barrel, and Brent crude oil futures lost 35 US cents, or 0.46%, to trade at US$75.17 per barrel by 1pm AEDT.
Local oil and gas heavyweights Woodside Energy (0.29%), Santos (0.15%), Karoon Energy (0.54%), Beach Energy (0.4%) and Ampol (0.18%) all lifted as the energy sector added 0.61%. The wider ASX 200 gained 1.01%.
Crude benchmarks notched gains earlier this morning as the US dollar tumbled amid uncertainty of the election outcome. However, oil appeared to fall on the back of a rally in the US dollar later in the day.
Oil prices lift on Gulf of Mexico storm fears, weaker US dollar
The news: Oil prices lifted on fears a storm could affect US output in the Gulf of Mexico and as the US dollar weakened on election day as polls showed a tight US presidential race.
The numbers: Benchmark Brent crude futures rose 0.76% to settle at USD75.65 ($114.02) a barrel, while US West Texas Intermediate (WTI) crude rose 0.92%, to settle at USD72.13.
The Australian dollar is buying 66.3 US cents.
The context: The gains came as energy firms in the Gulf of Mexico started evacuating workers from offshore platforms ahead of Tropical Storm Rafael, which is on track to strengthen into a hurricane this week. Analysts say the storm could reduce oil production by about four million barrels.
Meanwhile, the US dollar tumbled to a three-week low versus a basket of other currencies as traders squared positions ahead of uncertainty as the US presidential contest between Republican Donald Trump and Democratic Kamala Harris hurtled toward a tight finish.
A weaker greenback makes oil less expensive in other countries, helping boost demand.
This comes just days after the Organization of the Petroleum Exporting Countries and its allies said they would delay a production hike by a month from December as weak demand and rising non-OPEC supply depress markets.
