Oil stocks rally as Trump pressures Venezuelan crude buyers
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The news: Australia's largest oil producers rallied as global prices held gains after US President Donald Trump threatened to punish any nation buying crude from Venezuela.
The numbers: Beach Energy (1%), Santos (0.9%), Karoon Energy (0.8%) and Woodside Energy (0.2%) were all trading higher at 1:30pm AEDT.
Ampol (-1.6%) bucked the trend after the refiner and retailer reported damages to its Lytton refinery following Cyclone Alfred earlier this month.
Global crude benchmarks Brent and West Texas Intermediate were both flat at USD72.39 and USD69.09 a barrel respectively.
The context: Oil held earlier gains after Trump issued an order targeting Venezuela's oil and gas, threatening 25% tariffs on any country that purchased from the South American nation.
The move increased the risk of supply disruptions, with Venezuela responsible for around 0.9% of the world's total oil production, Bloomberg reported.
China formally resumed imports from Venezuela in February last year, making its first purchases since 2019.
What they said: "Venezuela has been very hostile to the United States and the Freedoms which we espouse. Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country," Trump said in a post on Truth Social.
The sources: Bloomberg, Truth Social
