Crude oil trading on a mixed note amid trump’s tariff threat and global supply concerns.
The benchmark Brent Crude Futures (ICE) traded in a narrow range of US$70.66 to US$71.33 during the day’s session (as on 7th May 2019, GMT-4, 5:00 AM).
The factor which is exerting pressure on crude prices is the pessimism among market participants over global economic conditions. The global economic conditions which started recovering amid progressive trade-talks, marking a series of round talks between the delegation from both the United States and China, is now jeopardized over the actions of the United States president Donald Trump.
The situation is expected by the market participants to get further escalated due to the recent official statement from Washington, which mentioned that the United States will move ahead with the Trump’s proposal, which in turn will mark an increase in tariff on the $200 billion worth of Chinese goods from current 10% to 25%. China is expected to retaliate by the market, which in turn, could again exert pressure on the global economic conditions.
The factor which is supporting the crude oil prices is the supply disruption caused by various factors such as OPEC production cut, an Export ban on Iran and Venezuela, etc.; however, the U.S building Crude Inventory is offsetting the gains from such supply disruption. The energy investors may keep a close eye on the development to reckon the fundamentals of the oil market on demand and supply parameter.
Energy companies on the Australian stock exchange reacted sharply over the fall in crude oil prices in the international market. However, currently the crude oil is trading higher from its previous close of $68.89 (Day’s low on 6th May 2019), which in turn, provided an impetus to energy shares and most of the energy shares on ASX recovered during the day’s session today.
Beach Energy Limited (ASX: BPT)
The shares of the company started the day’s session at A$1.980, higher than its previous close of A$1.955. The prices traded on a positive territory during the day’s session and marked the day’s high at A$2.010, where the shares ended the day’s session, up by 2.81% as compared to its previous close.
Woodside Petroleum Limited (ASX: WPL)
The shares of the company started the day’s session at A$34.990, higher than its previous close of A$34.740 amid a recovery in crude oil prices. However, the shares of the company plunged during the session from its high of A$35.080, to end the day’s session at A$34.900, up by 0.46% as compared to its previous close.
Despite a recovery in few energy shares, some shares on ASX followed the primary trend in crude oil prices (i.e., downtrend).
Oil Search Limited (ASX: OSH)
The share of the company started the downtrend from the level of A$8.300 (Day’s high on 24th April 2019), and the prices plunged continuously to the level of A$7.415 (Day’s low on 6th May). The prices slightly recovered in the previous trading session and closed at A$7.530. However, the share prices of the company resumed the original downtrend and dropped to mark a close of A$7.440, down by 1.20% as compared to its previous close.
Shares of companies like Sundance Energy Limited, Senex Energy Limited Carnarvon Energy Limited, etc., followed the footsteps and continued their original downtrend.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.