Oil stocks fall ahead of US rates decision, OPEC+ meeting
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The news: ASX oil and gas majors reversed Monday's gains as crude traded near seven-week lows on a softening demand outlook and as traders remained cautious ahead of US and Japan central bank meetings this week, Reuters reported.
The numbers: Global benchmark Brent crude was down 37 US cents, or 0.47%, to USD78.68 ($120) per barrel by 2:20pm AEST. West Texas Intermediate (WTI) crude lowered 37 US cents, or 0.49%, to USD75.45 per barrel.
In the local market, Karoon Energy (-2.7%), Beach Energy (-1.6%) Woodside Energy (-1.3%), Santos (-1.1%) and Ampol (-0.4%) were all trading lower as the energy sector lost 1.37%.
The context: Tensions in the Middle East and uncertainty following the Venezuelan election — which had the potential to boost crude prices — were trumped by worries over Chinese demand.
Meanwhile, traders are cautious ahead of an interest-rate decision from the US Federal Reserve on Wednesday, and a monitoring meeting of the Organization of the Petroleum Exporting Countries and allies (OPEC+) on Thursday. The market is split on whether the the group will proceed with a scheduled output increase next quarter, Reuters reported.
The source: Reuters
