Oil producers lead ASX 200 losses as prices slump
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The news: Oil producers were among the biggest losers on the ASX 200 as the benchmark index prices for the commodity fell and as an ADNOC-led consortium walked away from a $36.4 billion bid to buy Santos.
The numbers: At 12:00pm AEST, Santos was leading losses on the ASX 200, its share price having slipped 12% to $6.73.
Woodsides (-5.7%) also fell, as did smaller producers Karoon Energy (-4.4%) and Beach Energy (-3.7%). The energy sector was down 5.4%.
Benchmark oil index prices West Texas Intermediate and Brent Crude fell 0.69% and 0.42% respectively.
The context: Oil prices had been declining amid heightened geopolitical risks, such as increased Ukrainian attacks on Russian energy infrastructure, and an accelerated ramp-up in oil production by the Organization of the Petroleum Exporting Countries and its partners.
Worries about US demand were also stoked following the release of data on Wednesday that indicated an increase in US diesel stockpiles.
Traders had also largely priced in a widely expected interest rate cut by the US Federal Reserve early on Thursday (AEST).
