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Highlights
- ields on the Australian benchmark 10-year bond have risen above 3.5%, as of 10 May 2022.
- The US Fed has hiked the interest rates by 50 basis points, which spooked the markets across the globe.
- Based on a few surveys, the cash rate is expected to rise up to 1.75% by the year end.
Crude oil kicked off the week on a gloomy note, having tanked over 6% on Monday, tracking a massive sell-off in global markets across asset classes. However, one major driver was Saudi Aramco’s decision of reducing oil prices for all types of crude for Europe, Asia, and the Mediterranean for June 2022.
Worries over shrinking crude oil demand due to the COVID-19 situation in China have also weighed on the commodity. On that note, let us have a look at how some of the ASX energy shares have performed today.
Read More: Crude oil dips on China’s slower factory activity data
- Woodside Petroleum Limited (ASX:WPL)
Woodside Petroleum is an Australian petroleum exploration and production giant having a market capitalisation of over AU$31 billion with 983.98 million shares on issue. The company clocked a profit of AU$1.98 billion in FY21, compared to a net loss of AU$4.02 billion in FY20.
WPL shares tanked at the open and traded below AU$31 throughout the trading session today. The stock made a low of AU$30.03 as selling intensified in early trade, but demand from the lower levels helped WPL shares to pare back some of the losses and close the session at AU$30.77.
- Santos Limited (ASX:STO)
Santos is an Australian oil and exploration company and is the second largest independent oil and gas producer after Woodside Petroleum. The company has a market capitalisation of AU$27.36 billion with 3.38 billion issued shares. Shares of STO are currently trading at a dividend yield of 2.41%, having declared its latest dividend of AU$0.118 per share in March 2022.
STO shares also fell lower during the morning session as market participants discounted the overnight fall in crude oil. However, after plunging to a low of AU$7.7, the stock showed a smart recovery of AU$0.24 and closed the session 1.73% down at AU$7.94. The volume of the day was recorded at over 16 million shares.
- Viva Energy Group Limited (ASX:VEA)
The last name on the list is Victoria-based Viva Energy Group, which owns the Geelong Oil Refinery and retails Shell-branded fuels across Australia. The company has a market capitalisation of AU$4.26 billion with 1.55 billion issued shares. In FY21, the company generated a revenue of AU$15.9 billion, compared to AU$12.4 billion in FY20.
VEA shares opened the session with a gap down and fell to the day’s low of AU$2.63. After some demand from the lower levels, the shares ended today’s session 2.91% lower at AU$2.67 on the back of a volume of 2.24 million shares.
Bottom Line
Crude oil has witnessed extreme volatility since the onset of the war between Ukraine and Russia, with lockdowns in China only exacerbating the situation. Therefore, investors need to remain cautious while investing in crude oil or any other commodity during these times.
