Rising crude prices send ASX oil stocks higher
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The news: Oil stocks gained on the ASX as reductions in US crude stockpiles and heightened hopes of a Federal Reserve interest rate cuts by the end of the year boosted global crude prices.
The numbers: Brent crude futures were up 37 US cents to USD83.95 ($127.50) a barrel by 2:20pm AEST. US West Texas Intermediate crude for June was up 46 US cents to $79.45 per barrel.
In the local market, energy was the market's best performing sector in a weak trading day, rising 0.75%. The broader ASX 200 was down 1.1% by 2:38pm AEST.
Meanwhile, oil and gas majors Strike Energy (8%), AGL Energy (2.4%), Beach Energy (2.4%) and Woodside Energy (1.3%) all rose and made up four of the best 10 performing ASX 200 stocks.
The context: Last week, US crude inventories reduced by 1.4 million barrels to 459.5 million barrels, Reuters reported. Shrinking US stockpiles, combined with increasing expectations that the Federal Reserve will cut interest rates by the end of the year following weaker-than-expected US jobs data, helped to lift oil prices today.
However, growing expectations of a ceasefire in the Middle East have prevented prices from rising higher.
The source: Reuters
