Oil stocks slide as crude prices extend declines
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The news: Karoon Energy and Beach Energy led declines in oil and gas stocks after supply disruption eased in the US and a stimulus announcement in China disappointed investors on Friday.
The numbers: Beach Energy (-1.6%), Karoon Energy (-1.3%), Ampol (-0.7%), Santos (-0.7%) and Woodside Energy (-0.3%) were all trading lower at 1:40pm AEDT.
The energy sector shed 0.5%, in line with the wider market.
Brent crude fell 0.39% to USD73.58 ($111.69) while US West Texas Intermediate dropped 0.5% to USD70.02. Both benchmarks fell more than 2% on Friday.
The context: Oil prices settled as concerns about supply disruption from Tropical Storm Rafael in the US Gulf of Mexico subsided. More than 25% of the region's oil and 16% of its natural gas output remained offline on Sunday, Reuters reported.
Meanwhile, China's latest stimulus package disappointed investors seeking fuel demand growth in the world's second biggest oil consumer.
The source: Reuters
