Oil rebound lifts energy majors, but Woodside drops on ammonia deal
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The news: Several oil and gas majors advanced on the ASX after crude prices rebounded on fears of an escalation of the war in the Middle East.
However, Woodside Energy tumbled after announcing the USD2.35 billion ($3.61 billion) acquisition of a clean ammonia project in Texas after the closing bell on Monday.
The numbers: Brent crude futures were up 95 US cents, or 1.25%, at USD77.25 ($118.49) a barrel by 11:45am AEST, having traded around seven-month lows on Monday, Reuters said. US West Texas Intermediate crude was up USD1.10, to 1.5%, at USD74.03.
Karoon Energy (2.4%), Santos (1.7%) and Beach Energy (0.5%) all gained, while Woodside shed 5.1%. Energy was the worst performing sector, down 1.65%.
The context: Oil prices slid in line with widespread market declines on Monday as investors sold riskier assets. However, prices rebounded due to fears of a possible escalation of the war in the Middle East and associated disruptions to crude supply, as Iran signalled a military response to the assassination of Hamas leader Ismail Haniyeh.
Woodside shares dived after announcing the acquisition of OCI Clean Ammonia Holding and its lower carbon ammonia project in the US. The project is under construction and targets production of first ammonia from 2025, and lower carbon ammonia from 2026.
The sources: Reuters, ASX announcement
