The S&P/ASX 200 Index (ASX: XJO) is starting this Tuesday off on the front foot. At the time of writing, the ASX 200 is up a healthy 0.4% to 7,519 points. The sector contributing the most to today’s gains is currently ASX energy shares.
As it currently stands, the S&P/ASX 200 Energy Index (ASX: XEJ) is the top-performing sector of the entire ASX 200. It’s currently up 2.48% to 7,504 points. Of the nine ASX enegy shares that make up this index, only one is currently in the red today. That would be Whitehaven Coal Ltd (ASX: WHC).
Other than Whitehaven, we are seeing some very strong moves here. At the top of the pile is Woodside Petroleum Limited (ASX: WPL). Woodside shares are currently up a very healthy 3.15% to $20.30 a share. Close on Woodside’s heels are Beach Energy Ltd (ASX: BPT) and Ampol Ltd (ASX: ALD) and Santos Ltd (ASX: STO). These ASX 200 energy shares are up 2.84%, 2.82% and 2.52% respectively. Oil Search Ltd (ASX: OSH), which reported its FY21 earnings this morning, is up 1.62% to $3.76 a share.
So why are ASX 200 energy shares outperforming today?
Well, we don’t have to look too far.
ASX 200 energy shares rise on the back of higher oil prices
A sector-wise rise (or fall) in the commodity space tends to be caused by one thing – a change in commodity prices. And we have seen this price of crude oil rally strongly over the past 24 hours.
As my Fool colleague James gazetted this morning, West Texas Intermediate (WTI) crude oil prices rose by almost 6% overnight (our time) to back over US$65 a barrel. Brent crude was also up to back over US$69 a barrel. Some good news from China in regards to its COVID oubreak, as well as a drop in the strength of the US dollar, were cited as factors here.
It’s this strength in the oil markets that are likely buoying ASX energy shares today. And this seems to have flowed through (no pun intended) to the entire ASX 200 Index this Tuesday.
The post Energy sector leading the ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of August 16th 2021
More reading
- Oil Search (ASX:OSH) dividend reinstated following strong first-half results
- ASX 200 midday update: Kogan crashes, Nanosonics rockets
- Oil Search (ASX:OSH) share price rises on $139m profit for first-half
- 5 things to watch on the ASX 200 on Tuesday
- The ASX reporting wrap-up: Charter Hall, Ampol, NIB Holdings
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3ycq3rK
Leave a Reply