Energy Stocks React to Potential Surge in Global Oil Supply from Iraq and Russia

2 min read | February 17, 2025 01:39 PM AEDT | By Team Kalkine Media

Google News:

Energy Stocks React to Potential Surge in Global Oil Supply from Iraq and Russia — Image source: Shutterstock

Recent News

Why Is Insider Activity Putting Lion Rock Minerals Back in Focus?

Should Investors Be Concerned About Insider Selling at Clever Culture...

Can Lendlease’s Australia-First Strategy Rewrite Its Future?

3 ASX ETFs That Could Shape the Next Decade

Make Kalkine Media
My Trusted Source

Highlights

Energy stocks face a downturn due to increased oil supply concerns.
Woodside Energy (ASX:WDS) leads the decline after reporting lower reserves.
Global crude prices dip as oil exports from Iraq and Russia are set to rise.

Energy stocks on the ASX 200 experienced a notable downturn this morning, with the sector slipping by over 2% before recovering slightly. This decline came as a result of concerns regarding the potential increase in global oil supply from Iraq and Russia, putting pressure on crude oil prices.

At 11:45 am AEDT, the Energy sector was down by 1.3%, becoming the second-worst performing sector on the ASX 200 index, trailing only the financial sector which dropped 2%. The broader ASX 200 was down by 0.7% overall.

Woodside Energy (ASX:WDS), a key player in the energy sector, took the hardest hit, declining by 2.3%, though it had been down as much as 3% earlier in the day. The company's drop was linked to the announcement of a decline in group reserves. Other oil and gas heavyweights also saw losses, including Karoon Energy (ASX:KAR) which fell by 1.1%, Santos (ASX:STO) down 0.7%, and Beach Energy (ASX:BPT) which was marginally lower by 0.2%. However, Ampol (ASX:ALD) bucked the trend, showing a slight gain of 0.1%.

The drop in energy stocks coincided with a drop in global crude prices. Brent crude slipped 0.4% to US$74.46 per barrel, while West Texas Intermediate (WTI) crude was down 0.5%, trading at US$70.40 per barrel.

The market's reaction stems from news that Iraq is preparing to resume oil exports from its semi-autonomous Kurdistan region after nearly two years of disruption. Nechirvan Idris Barzani, the president of the Kurdistan region, signaled that exports could return as early as next month. This potential surge in oil supply is weighing on global oil prices.

Further impacting the market, peace talks related to the war in Ukraine are also moving toward a resolution, which could lead to an increase in Russian oil exports. These discussions have the potential to reduce the constraints currently placed on Russian oil due to ongoing sanctions from multiple countries, thus raising the likelihood of greater Russian oil availability in the global market.

These developments highlight the volatility in the energy sector, where global oil supply shifts and geopolitical tensions can significantly impact market sentiment and stock prices. Energy investors are closely monitoring these events, which are expected to continue influencing the sector in the coming weeks.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.