Energy stocks lead ASX declines as oil price tumbles
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More news: Oil and gas majors sank in morning trade on the ASX after oil prices fell to their lowest levels since December on Tuesday.
Karoon Energy (-6%), Beach Energy (-3.9%), Santos (-3%), Woodside Energy (-2.5%) and Ampol (-1.2%) were all trading lower by 11:40am AEST, as energy (-2.87%) saw the biggest sector-wide decline.
Oil slumps 5% as end to Libyan dispute in sight
The news: Oil prices slumped to their lowest levels in nearly nine months on signs of a deal to resolve a dispute that has halted Libyan crude production and exports.
The numbers: Brent crude futures closed down 4.9%, at USD73.75 ($109.86) a barrel, their lowest level since mid-December. US West Texas Intermediate crude futures fell 4.4% to USD70.34, also their lowest since December.
The context: The decline comes after Libya's legislative bodies agreed to appoint a new central bank governor within 30 days after UN-sponsored talks.
Libyan oil exports at major ports were halted on Monday and production curtailed across the country, Reuters reported, continuing a standoff between rival political factions over control of the central bank and oil revenue.
Production in the North African country had plunged to little more than 591,000 barrels per day (bpd) as of 28 August from nearly 959,000 bpd two days earlier and about 1.28 million bpd on 20 July.
Ahead of the news of more Libyan supply possibly returning to the market, prices had fallen on the belief that demand was being undercut because of sluggish economic growth in China, the world's biggest crude importer.
The source: Reuters
