AUS
NZ
UK
CA
USA
IND
Key Points
- The Australian energy sub-index fell 1.1%, hitting its lowest level since October 1, amid a 2% drop in oil prices and OPEC's lowered demand growth outlook.
- Shares of Woodside Energy and Santos dropped as much as 1.5%, while Ampol retreated up to 5% following a 42% decrease in Q3 output from its Lytton refinery.
- The energy sub-index is down 13.6% year-to-date, in stark contrast to the benchmark ASX200 index, which has risen 9.4%.
The Australian energy sub-index (XEJ) experienced a decline of as much as 1.1% on Tuesday, reaching its lowest level since 1 October 2024. This downturn comes in the wake of a 2% drop in oil prices on Monday, following OPEC's decision to lower its growth outlook for global oil demand in 2024 and 2025. Compounding these concerns, China’s oil imports fell for the fifth consecutive month, raising further doubts about future demand in one of the world's largest oil consumers.
As a result of these developments, shares of major energy companies such as Woodside Energy (ASX:WDS) and Santos (ASX:STO) both saw declines of up to 1.5%. These decreases reflect the broader challenges facing the energy sector amid fluctuating oil prices and uncertain demand forecasts.
Additionally, Ampol (ASX:ALD) faced a more significant setback, retreating by as much as 5% after reporting a staggering 42% drop in third-quarter output from its Lytton refinery in Queensland. This sharp decline in production has raised concerns among investors regarding the company’s operational efficiency and overall performance.
The energy sub-index has declined approximately 13.6% year-to-date, contrasting sharply with the benchmark ASX200 index, which has seen an increase of 9.4% over the same period. This divergence underscores the ongoing struggles within the energy sector, which continues to grapple with external pressures and market volatility.
