STO to BPT: How have ASX oil stocks fared amid a flip-flop in oil prices?

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  • Crude oil prices had tumbled on Wednesday with ease in future supply concerns but recovered on Thursday.
  • Over the past week, benchmark WTI crude oil futures recorded a drop of 1.23%, while Brent crude remained nearly stable.
  • Share prices of various ASX-listed oil and gas stocks extended their losses on Thursday.

Crude oil prices recovered on Thursday as lingering fears over tight global supplies overshadowed fears about a global economic slowdown amid equity selloffs.

On Wednesday, both crude oil benchmarks had tumbled nearly 2.5% due to an ease in future supply concerns after data showed that US refiners had increased output. However, a planned easing of lockdowns in China’s Shanghai helped oil prices recover the losses on Thursday.

Glancing at the last week’s price movement, benchmark WTI crude oil futures recorded a weekly drop of 1.23%, while Brent crude remained nearly stable.

Must Read: Crude oil rises on fresh Russia-Ukraine war warnings 

However, on Thursday, July delivery Brent crude oil futures gained and last traded at US$110.59 per barrel, up 1.36%, while July delivery WTI crude oil futures exchanged hands at US$108.13 per barrel, up 1.02% at 1:24 PM AEST.

Supply-side dynamics

On the supply side, US crude inventories dropped by 3.4 million barrels during the last week, as per the US Energy Information Administration (EIA) data. This came as an effect of a ramp-up in oil output by refiners in response to stiff inventories and near-record exports that have pushed US diesel and gasoline prices to record levels.

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Additionally, Russia’s oil production also dropped by nearly 9% in the last month, below its OPEC+ designated output quota. Few oil producers in the country have started to shut the production in some wells as Western allies put a ban on Russian oil imports.

Must Watch: As Russia-Ukraine War Intensifies, Commodities Also Soars 

Stock performance

Share prices of various ASX-listed oil and gas stocks extended their losses on Thursday despite a substantial gain in crude oil prices. Let's have a look at a few leading stocks and their performance.

Woodside Petroleum’s (ASX:WPL) share price was down 2.82% on Thursday. However, the shares have gained ~35.43% in the last six months and ~31.96% in 2022 so far.

Another significant O&G player, Santos (ASX:STO) has also gained around ~22.35% in the last six months. However, the STO share price dipped ~0.6% on Thursday.

Also Read: Crude oil slides from multi-year highs as Iran talks rev up  

Apart from this, various other small and mid-cap companies, including Karoon Energy (ASX:KAR),  Ampol Limited (ASX:ALD), and Beach Energy (ASX:BPT), also logged significant drops in their share prices on Thursday.



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