Oil stocks extend gains as crude prices climb
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The news: Energy stocks extended gains in early trading on the ASX, as benchmark oil prices inched higher.
The numbers: Energy, up 0.25%, was the best performing sector by 11am AEDT as the ASX 200 lowered 0.56%.
Oil and gas explorer Karoon Energy (up 1.5%) was the best performing ASX 200 company for the second successive session. On Monday the company announced that drilling commenced at its part-owned Who Dat West exploration well in the US Gulf of Mexico.
Fellow oil majors Santos (0.5%), Beach Energy (0.5%), Woodside Energy (0.3%) and Ampol (0.1%) also gained.
Brent crude was up 0.2% to USD74.13 ($119.22) per barrel, while US West Texas Intermediate added 0.3% to USD71.19.
The context: Bloomberg reported that bullish oil bets reached a four-month high in the penultimate week of 2024, a week after hedge funds boosted bets on rising prices by the most in a year.
Despite a forecast supply glut and persistently soft China demand, investors see upside risk as US President-elect Donald Trump returns to the White House and conflicts in Ukraine and the Middle East continue.
The source: Bloomberg
