Oil Search and Santos could rise after oil prices surged higher on trade war optimism

Beach Energy Ltd (ASX:BPT), Oil Search Limited (ASX:OSH), Santos Ltd (ASX:STO), and Woodside Petroleum Limited (ASX:WPL) could be on the rise after oil prices stormed higher…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It looks set to be a very positive day of trade for Australia's leading energy producers on Wednesday after oil prices surged higher overnight.

According to Bloomberg, the WTI crude oil price has climbed 3.7% higher to US$57.01 a barrel and the Brent crude oil price has stormed 4.5% higher to US$61.21 a barrel.

Why did oil prices surge higher?

Traders were buying oil overnight after the United States Trade Representative (USTR) office revealed that new tariffs on certain Chinese consumer items would be delayed until December.

The USTR also announced that some products were being removed from the new China tariff list altogether. The office stated that "products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent."

According to CNBC, the USTR advised that the delay affects electronics including mobile phones, laptops, video game consoles, some clothing products and shoes, and toys.

This has eased concerns over an escalating trade war between the two nations. And as there had been concerns that the trade war would impact global economic growth and ultimately lessen demand for oil, the outlook for energy consumption has improved greatly overnight.

This is likely to mean that the shares of Beach Energy Ltd (ASX: BPT), Oil Search Limited (ASX: OSH), Santos Ltd (ASX: STO), and Woodside Petroleum Limited (ASX: WPL) will be on the rise today.

What else could rise?

It won't just be the energy producers pushing higher today. I suspect that Australian tech shares such as Appen Ltd (ASX: APX), Nearmap Ltd (ASX: NEA), and WiseTech Global Ltd (ASX: WTC) could be amongst the best performers on the market after their U.S. counterparts raced higher.

Late in the U.S. session the technology-focused Nasdaq index is up a sizeable 1.9%. And as the local tech sector tends to follow its lead, it bodes well for the day ahead.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »