Australia's oil and gas stocks are once again providing a level of support for the Australian share market after the price of oil rose strongly on Friday. The oil price rose to its highest level this year with Brent oil rising above US$61 a barrel while West Texas Intermediate (WTI) climbed above US$52 a barrel.
The latest jump came after data showed further rig closures in the United States, helping to ease concerns over the market's massive oversupply situation. As reported by the Fairfax press, data from oilfield services company Baker Hughes showed that the number of rigs drilling for oil in the US fell by 84 to just 1,056, while hundreds more could be closed over the coming months. Meanwhile, euro zone economic growth also exceeded expectations which further boosted the market's confidence.
Here's how Australia's energy and liquefied natural gas (LNG) stocks are faring today.
BHP Billiton Limited (ASX: BHP) up 1.5%
Senex Energy Ltd (ASX: SXY) up 7.1%
Woodside Petroleum Limited (ASX: WPL) down 1.3%
Santos Ltd (ASX: STO) up 0.6%
Liquefied Natural Gas Ltd (ASX: LNG) up 4.4%
Sundance Energy Australia Ltd (ASX: SEA) up 2.6%
Although the price of oil has drastically improved over the last month, it remains heavily in the red compared to its highs recorded in June last year at around US$115 a barrel. Nonetheless, conditions certainly appear to have improved which is an encouraging sign for investors.
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