Oil stocks slide on OPEC+ demand concerns
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The news: Oil stocks lowered on the ASX after the Organization of the Petroleum Exporting Countries and allies led by Russia (OPEC+) delayed its planned oil production hikes by three months.
The numbers: Oil and gas majors Woodside Energy (-1.8%), Santos (-0.9%), Karoon Energy (-0.9%) and Ampol (-0.2%) were all trading lower by 1:40pm AEDT as Beach Energy added 0.8%.
Energy, down 1.07%, was the second worst performing sector as the wider market shed 0.4%.
Brent crude lowered 0.26% to USD71.90 ($111.80) per barrel, while West Texas Intermediate was down 0.22% to USD68.15.
The context: OPEC+, responsible for around half of the world's oil production, agreed to delay the start of oil output rises by three months until April. The group also extended the full unwinding of cuts by a year until the end of the 2026.
Softening global demand, led by China, combined with higher output by other oil producing countries, has seen OPEC+ push back production increases several times.
What they said: "The announcement makes crystal clear that the group is worried about both a potential supply glut and a lack of compliance with production targets among member countries," Rystad Energy's head of oil analysis, Mukesh Sahdev, told Reuters.
The source: Reuters
