Australia's energy and gas stocks are doing their part to lift the Australian stock market today even though global oil prices retreated overnight.
Although the oil price remains well below the highs experienced in June last year, they have recovered substantially over the last couple of weeks. On Monday night, Brent oil was trading for US$61.80 per barrel, up from US$45 a barrel in January. While it slipped back below the US$61 a barrel mark overnight, some analysts attributed the fall to the strong gains experienced recently, while others said trading was thin with several Asian countries starting their Lunar New Year celebrations.
According to Reuters, instability in the Middle East could also be supporting prices, limiting them from falling too far. Here's how the Australian energy sector is looking today.
- Sundance Energy Australia Ltd (ASX: SEA) has risen 4.3%
- Woodside Petroleum Limited (ASX: WPL) is up 4.2%
- Santos Ltd (ASX: STO) has jumped 1.1%
- Origin Energy Ltd (ASX: ORG) up 2.5%
- Liquefied Natural Gas Ltd (ASX: LNG) has surged 5.8%
- BHP Billiton Limited (ASX: BHP) has lifted 1.1%
Unfortunately, there is no way of knowing if the recent strength experienced in the oil market can be maintained but conditions are certainly looking better for energy investors.
