S&P/ASX 200 Index (ASX: XJO) energy shares retreated on Thursday as oil prices fell sharply overnight.
Western Texas Intermediate tumbled US$2.8 or 3.5% overnight from intraday highs of US$79.76 to US$76.91 a barrel. The global benchmark, Brent crude, briefly hit 3-year highs of US$83.45 a barrel before closing the session 3.15% lower at US$80.82.
ASX 200 energy shares and oil prices retreat
The S&P/ASX Energy (INDEXASX: XEJ) index is down 1.02% on Thursday, despite every other sector sitting in positive territory.
The Woodside Petroleum Limited (ASX: WPL) share price is down 0.36% to $24.94.
The Oil Search Ltd (ASX: OSH) share price is down 1.32% to $4.49.
Santos Ltd (ASX: STO) is the biggest loser today down 1.75% to $7.30.
While Beach Energy Ltd (ASX: BPT) is also down 1.61% to $1.40.
Despite a small pullback today, the ASX energy index is up 2.06% in the last five days and up 16.7% in the last month.
What’s next for oil?
Market participants are bullish on the near-term outlook for oil amid rising demand and tightening supply, according to S&P Global.
Oil prices jumped this week after the Organisation of the Petroleum Exporting Countries and allies, known as OPEC+ reaffirmed its existing plan to increase output by 400,000 barrels a day every month until at least April 2022.
Market participants were expecting an increase given supply-tight conditions and an ongoing energy crisis in Europe and China.
Another tailwind for oil was raised by analysts at Australia and New Zealand Banking Group Ltd (ASX: ANZ). Its report said that the recent jump in LNG and coal prices could encourage industrial and power generation sectors to switch to oil instead.
S&P Global said that the market will look at the United States Energy Information Administration (EIA) report due for release on 6 October for “further pricing cues”.
The post ASX 200 energy shares pullback as oil prices take a breather appeared first on The Motley Fool Australia.
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More reading
- Why has the Beach Energy (ASX:BPT) share price rallied 33% in a month?
- Top broker sees 16% upside for the Woodside (ASX:WPL) share price
- 5 things to watch on the ASX 200 on Thursday
- Here are the 3 most heavily traded ASX 200 shares this Wednesday
- Top broker names 2 of the best ASX shares to buy in October
Motley Fool contributor Kerry Sun 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.
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