Oil stocks advance as crude prices approach 3% weekly rise
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The news: Oil stocks climbed on the ASX as prices tracked a 3% gain for the week, as US jobs data and persistent fears of escalating tensions in the Middle East boosted global crude prices.
The numbers: Brent crude was up 7 US cents, or 0.09%, to USD79.24 ($120.03) a barrel by 2pm AEST. US West Texas Intermediate crude was up 13 US cents, or 0.17% at USD76.32 per barrel.
However, both Brent and WTI were set to gain more than 3% on a weekly basis, according to Reuters.
In the local market, energy was one of the best performing sectors on the ASX, adding 2.01%. Oil and gas majors Woodside Energy (2.4%), Karoon Energy (2.3%), Beach Energy (2%), Santos (1.4%) and Ampol (0.7%) were all trading higher.
The context: Prices were boosted overnight as new data showed that the number of new US unemployment benefit claims fell by a larger-than-expected 17,000 last week. The data eased recession concerns and fears of softening demand for oil.
Meanwhile, Israeli airstrikes in Gaza on Thursday killed at least 40 people, Palestinian medics said, further raising expectations for a wider war in the Middle East. It follows the killing of senior members of Hamas and Hezbollah last week, with anticipated retaliatory strikes by Iran against Israel heightening concerns over oil supply from the region.
The source: Reuters
