US oil prices rebounded slightly overnight after yesterday falling to a fresh five-and-a-half-year low, but the gains did not flow through to Australian energy stocks.
European benchmark Brent oil gained five US cents to $US51.15 a barrel in London after earlier sliding to $US49.66 a barrel, while US benchmark West Texas Intermediate advanced 72 US cents to $US48.65 a barrel on the New York Mercantile Exchange.
However, CommSec market analyst Steven Daghlian said the overnight rally did not flow through to ASX-listed energy stocks, with Santos down 10 cents to $7.35 and Woodside Petroleum falling 20 cents to $35.94.
In London, markets analyst Michael Hewson told AFP that yesterday’s move below $US50 a barrel in the US oil price “shows how momentum is everything here”.
“With no sign that OPEC will do anything about over-production, it seems likely that we could well see further declines towards $US40 in the coming weeks – particularly given that demand shows no signs of picking up.
“Weak growth and weak demand in China and Europe are likely to continue to be the main drivers as the battle for market share intensifies. We’ll probably still see sharp swings in the interim but the direction of travel seems clear, unless OPEC acts.”
The Australian stock market opened higher this morning, with global miner BHP Billiton gaining 24 cents to $28.35, Rio Tinto lifting 37 cents to $57.66, and Fortescue Metals flat at $2.74.
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Among the banks, Commonwealth Bank was up 19 cents at $85.30, NAB lifted 14 cents to $33.56, Westpac gained nine cents to $32.78, and ANZ picked up 17 cents to $31.89.
Telstra was one cent higher at $5.96.
Qantas was 1.5 cents lower at $2.54 amid news its biggest investor, Franklin Resources, had reduced its stake in the airline.
– AAP/AFP
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