- 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.
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.
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.
Source: © Dianaopryshko | Megapixl.com
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.
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.
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.