Oil stocks extend losses on prospect of increased OPEC+ supply
Make us a preferred source
Make us a preferred source on Google
The news: Australian oil companies extended losses from Tuesday after OPEC+ countries announced planned production increases from April, sending global crude prices tumbling.
The numbers: Oil and gas stocks Viva Energy (-4.7%), Ampol (-4.4%), Karoon Energy (-2.4%), Santos (-1.8%), Woodside Energy (-0.9%) and Beach Energy (-0.5%) had all lost ground at 3pm AEDT.
Energy was the third worst performing sector, falling 1.3% as the ASX 200 index dropped 0.9%.
Brent crude was down 0.4% to USD70.76 ($113.13) a barrel. West Texas Intermediate was 0.9% lower at USD67.68.
The context: OPEC+ confirmed that it would move ahead with plans to increase production from next month, surprising most analysts. The move has heightened concerns of oversupply, compounded by a potential softening of US sanctions on Russian oil as part of peace talks over the war in Ukraine.
The cost of Oman crude on the Gulf Mercantile Exchange lowered below global benchmark Brent for the first time since late last year, according to Bloomberg data. Key timespreads that gauge the health of the region’s Dubai benchmark also fell.
The source: Bloomberg
