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Energy stocks seem to hail from the latest oil price drive as it moved up to about a four-year high level. With U.S. sanctions on Iran coming into picture and a North American trade deal taking charge for growth prospects, the oil price was seen to be on the uptrend.
As per the latest updates, President Donald Trump has discussed the matter with King Salman bin Abdulaziz of Saudi Arabia in order to sustain supplies. It is also key to witness the cut in the number of rigs drilling for American crude happening for a second week and this is indicative of a probable slowdown in output. Meanwhile, the United States bagged a deal with Canada over the weekend to rescue the North American Free Trade Agreement (NAFTA), which is a trilateral pact with Mexico. This NAFTA deal is aimed at boosting oil prices with better growth prospects for both the countries and North America as a whole.  [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]
With this, brent crude oil futures were trading at around a level of $ 85.02 per barrel and touched closer to the $85.45 peak level, which is its highest since November 2014. There has been a 20 percent advancement in the price from low levels seen in the month of August. There was a 24 cents movement in U.S. West Texas Intermediate (WTI) crude futures as well that touched $75.54 per barrel. The levels indicate a rise of 17% in WTI since mid of August. The recent impetus in the oil price has given investors some bit of a relief on the oil and energy stocks; and in fact, there has been an increase in the open interest in call options at $ 90 (by about 12 k lots to about 38 k lots per 38 million barrels in last one week).
Further, brent for December settlement was up by $2.25 on the London based ICE Futures Europe exchange and touched $84.98 a barrel. It is now worth noting that U.S. sanctions on Iran will come into effect around November 4, 2018 and will slash crude exports from the number 3 producer in the Organization of the Petroleum Exporting Countries; and with about 1.5 million barrels per day of Iranian oil going offline on November 4, the market is expecting the oil price to touch the levels around $100 per barrel of price tag.
With this, many ASX listed energy players moved up on October 02, 2018. Origin Energy Limited (ASX:ORG) was up about 1.9% as at 2 PM AEST while BHP Billiton (ASX:BHP) edged up by 0.26%. Junior player, Liquefied Natural Gas Limited (ASX:LNG) was also up 1.4%.
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