Woodside and Ampol retreat as OPEC+ supply hike weighs on prices
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The news: Australian oil companies sold off in morning trade after the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to another major output increase on Sunday, sending global crude benchmarks tumbling.
The numbers: Woodside Energy and Ampol were both 1.3% lower at 11:45am AEST, with smaller rival Karoon Energy down 1.9%.
Santos only lowered 0.1% after signing a domestic gas supply agreement with French energy group ENGIE. Beach Energy was up 4% after trimming its full-year loss and lifting its final dividend.
Energy was the worst performing sector, losing around 1% as the ASX 200 fell 0.2%.
Global crude benchmarks Brent and West Texas Intermediate were both down around 0.5% after OPEC+ agreed to increase oil production by 547,000 barrels a day from September, in line with market expectations.
The context: The decision by OPEC+ on Sunday helped push prices lower, with softer-than-expected US jobs data on Friday already weighing on crude benchmarks.
The September output hike will complete the reversal of a cutback made by an eight-member sub-group of the alliance in 2023.
The source: Bloomberg
