ASX oil stocks rise as US producers brace for hurricane
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More news: Oil stocks advanced on the ASX after oil prices settled higher on concerns that a hurricane will disrupt production and refining along the US Gulf Coast this week.
Majors Karoon Energy (2.3%), Beach Energy (1.6%), Woodside Energy (0.8%), Ampol (0.6%) and Santos (0.1%) were all trading higher by 1:40pm AEST, as the energy sector added 0.44%.
US storm forecast pushes oil prices higher
The news: Oil prices settled higher on concerns that a hurricane forecast to hit Louisiana on Wednesday will disrupt production and refining along the US Gulf Coast.
The numbers: Brent crude futures were up 1.1% to USD71.84 ($107.84) a barrel, after last week hitting their lowest level since December 2021.
US West Texas Intermediate crude futures (WTI), rose 1.5% to USD68.71.
The context: Oil and gas producers along the US Gulf Coast started evacuating staff and curbing drilling to prepare for tropical storm Francine as it churned across the Gulf of Mexico.
The US National Hurricane Center projected Francine will strengthen into a hurricane on Tuesday before hitting the Louisiana coast. The Gulf Coast accounts for about 50% of the country's refining capacity.
The disruption comes after the OPEC+ (Organization of the Petroleum Exporting Countries and allies like Russia) oil producer group agreed to delay a planned output increase of 180,000 barrels per day for October by two months in reaction to tumbling crude prices.
Analysts said investor optimism about a soft landing scenario for the US economy also helped support crude prices. Lower rates can boost economic growth and demand for oil.
The source: Reuters
