Australian energy stocks faced downward pressure as Brent crude oil prices declined to levels unseen since 2021. This drop is attributed to indications that supply is exceeding demand and growing optimism surrounding Ukraine peace talks, potentially leading to increased Russian exports. Brent crude initially fell by approximately 2 per cent to US$59 per barrel before partially recovering to around US$59.50.
The slight recovery followed increased sanctions on Venezuela by US President Donald Trump, which included a tanker blockade. These measures were implemented after US forces seized a Venezuelan oil tanker the previous week. Trump also designated President Nicolas Maduro’s regime as a foreign terrorist organisation, further heightening tensions within global oil markets.
Woodside Petroleum, a leading Australian oil and gas exploration and production company, experienced a 2.2 per cent decrease in its stock value. Santos, another major player in the Australian petroleum industry focused on exploration, production, and sales, saw a 0.7 per cent decline. Beach Energy, an oil and gas company involved in exploration and production, also felt the impact, with its shares dropping by 1.6 per cent.
