West Texas Intermediate (WTI) crude also reached a four-year high of US$113 per barrel during the conflict.

Oil prices skyrocketed due to the effective shutdown of the Strait of Hormuz, which carries 20% of the world's oil and gas supply.

Today, all those oil price gains are gone.

Oil prices are back to pre-war levels, and ASX 200 energy shares are down sharply this week as a result.

What's the oil price today?

The Brent crude oil price is US$79.50 per barrel, and WTI is US$76.40 per barrel at the time of writing.

Brent Crude is down 9% for the week and down 24% over the month. WTI has fallen 10% this week and 22% over the month.

Oil prices began a rapid retreat in recent weeks after US President Donald Trump talked up an impending deal with Iran.

News of a US-Iran interim peace agreement earlier this week saw a final cascade in oil prices back to February levels.

The deal incorporates a 60-day ceasefire, the end of the US blockade of Iranian ports, and the reopening of the Strait of Hormuz.

Trading Economics analysts said the supply disruption caused by the 16-week war was the biggest on record.

Today, tankers are slowly moving out of the Strait of Hormuz.

The analysts said:

Tankers carrying previously stranded crude began exiting the waterway on Thursday, and Kuwait said it would begin increasing production.

As a result, oil prices have erased nearly all the gains recorded since the Middle East conflict began in late February.

While oil prices have slumped, many economists say we have yet to see the full inflationary impact of the supply shock.

In Australia, higher oil prices have contributed to three interest rate rises already this year.

What's happening with ASX 200 energy shares on Friday?

ASX 200 energy shares are in the red on Friday, with the S&P/ASX 200 Energy Index (ASX: XEJ) down 0.9%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) is down 1%.

The Woodside Energy Group Ltd (ASX: WDS) share price is up 0.1% to $28.66 today, but down 7.2% over the week.

The Santos Ltd (ASX: STO) share price is 1.5% lower at $7.23, and has fallen 8.9% over five days.

The Ampol Ltd (ASX: ALD) share price is 1.4% lower at $32.88, and is 8.1% lower over the week.

The Viva Energy Group Ltd (ASX: VEA) share price is down 0.5% to $2.14, and down 1.8% over five days.

Karoon Energy Ltd (ASX: KAR) shares are 2.3% lower at $1.41, and down 25.7% this week after production downgrades.

The Beach Energy Ltd (ASX: BPT) share price is 2.5% lower at 97 cents, and down 9.8% over five days.

The post Oil prices slump to pre-war levels as supply-risk premium evaporates appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set for a subdued day on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.25% lower. In the United States, the Dow Jones rose 0.65%, but the S&P 500 fell 0.55% and the Nasdaq dropped 1.15%.

Oil prices continue to tumble

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 5.1% to US$76.66 a barrel and the Brent crude oil price is down 4.45% to US$79.47 a barrel. This follows reports that the US will allow Iran to sell oil immediately.

Buy Dexus Convenience shares

Bell Potter is bullish on Dexus Convenience Retail REIT (ASX: DXC) shares. This morning, the broker has named the REIT as a buy with a trimmed price target of $3.15 (from $3.25). It said: "We maintain our Buy rating on DXC and lower our target price to $3.15. The buyback and developments offer attractive long-term returns, despite the short-term headwinds from rising bond yields. With our revised forecasts DXC is yielding 7.9% vs. 6.4% passive REIT average which we think offers compelling risk adjusted value, and at an implied 8.21% cap rate, despite recent asset sales supporting book value."

Gold price edges higher

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Wednesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.1% to US$4,353.3 an ounce. Easing interest rate hike bets have given the precious metal a boost.

SpaceX now bigger than Amazon

Space Exploration Technologies Corp (NASDAQ: SPCX) shares continued their post-IPO rise overnight on Wall Street. This has taken the space and AI company's shares to a market capitalisation of US$2.66 trillion, which takes it ahead of Amazon (NASDAQ: AMZN) and within sight of Microsoft (NASDAQ: MSFT).

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Crude oil fell to US$79 per barrel on Tuesday. This comes as officials from the US and Iran said they have reached a deal to reopen the Strait of Hormuz, potentially in time for the upcoming G7 meeting.

That is a fall of approximately 37% from Brent's intraday peak of above US$126 earlier in the conflict.

For Woodside Energy Group Ltd (ASX: WDS), Santos Ltd (ASX: STO), and Beach Energy Ltd (ASX: BPT), that move has immediate and significant implications.

What the oil price retreat means for ASX energy shares

The link between oil prices and ASX energy shares is quite clear and direct.

When oil fell 20% in May on the first ceasefire talks, energy shares led the ASX 200 sectors down.

Woodside, Santos, and Beach all gave back significant portions of their earlier gains.

The EIA's June 2026 Short-Term Energy Outlook forecasts Brent prices averaging $105 per barrel in June and July, based on the assumption that the Strait of Hormuz remains closed.

Should the Strait reopen, that forecast would be revised sharply downward.

However, traders remain cautious. Prices briefly recovered after President Trump cast doubt on the reported draft agreement, saying the published terms did not reflect the agreement discussed.

Woodside Energy

Woodside has been the biggest beneficiary of elevated oil prices in 2026, rising 25% year to date.

A sustained fall to US$80 per barrel would reverse a significant portion of that gain.

However, Woodside's longer-term investment case is not solely dependent on the oil price.

The company's breakthrough Scarborough LNG project is now 94% complete with first cargo targeted for Q4 2026. Furthermore, Woodside's decade-long LNG contracts provide a significant floor for cash generation even in a softer oil price environment.

Santos Ltd

Santos is up approximately 20% year to date, making it one of the best-performing energy stocks on the ASX in 2026.

A deal to reopen the Strait of Hormuz would partially reverse those gains, with an 8% decline on Monday.

However, like Woodside, the investment case for Santos is also not just about the oil price.

The company's Barossa LNG project is already producing at 75% of its planned 2026 production rates, with plateau production targeted before year end. First oil from Pikka Phase 1 in Alaska provides an additional production stream.

These operational milestones should provide the company with greater protection and diversification against external oil price movements.

Beach Energy

Beach Energy is the most leveraged of the three to oil price movements, given its smaller size and higher sensitivity to oil and gas price changes.

Shares have fallen in recent weeks even as the broader energy sector surged, reflecting ongoing concerns about its production guidance downgrade in Q3 FY2026.

A sustained fall in oil prices to US$80 per barrel would add further near-term pressure to Beach's earnings outlook.

However, Beach has strengthened its balance sheet significantly, with available liquidity rising to $974 million and net gearing falling to just 11%.

This financial resilience means it can navigate the oil price volatility without the balance sheet stress that may concern investors in a more leveraged company.

Foolish takeaway

Oil at US$80 per barrel is materially lower than the levels that drove ASX energy shares to their recent highs.

If a sustained peace deal materialises and the Strait reopens, Woodside, Santos, and Beach may face further near-term price pressure.

But all three are operating businesses with diversified cash flows and long-term contracts that do not disappear when the oil price falls.

For long-term investors, the near-term volatility may be creating a more attractive entry point than was available a fortnight ago.

The post Oil retreats as Iran tensions ease. Here's what that means for ASX energy shares appeared first on The Motley Fool Australia.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to sink

The Australian share market looks set to tumble on Tuesday despite a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 123 points or 1.4% lower. In the United States, the Dow Jones rose 0.9%, the S&P 500 climbed 1.65%, and the Nasdaq stormed 3.1% higher.

PLS shares given hold rating

PLS Group Ltd (ASX: PLS) shares are fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating with an improved price target of $6.15 (from $5.50). It said: "We maintain our Hold recommendation. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant. P2000 and Colina development studies are being progressed, providing substantial organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals."

Oil prices sink

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough session after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.1% to US$81.42 a barrel and the Brent crude oil price is down 4.1% to US$83.73 a barrel. This follows news that the US and Iran have signed a peace deal.

Gold price storms higher

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 2.3% to US$4,337.7 an ounce. Traders were buying gold amid easing interest rate hike fears after oil prices pulled back.

Buy Mineral Resources shares

Mineral Resources Ltd (ASX: MIN) shares are good value according to Bell Potter. This morning, the broker has retained its buy rating with an improved price target of $83.00. This implies potential upside of approximately 16% from current levels. It said: "Completion of the US$765m MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with cash flows from persistent iron ore and lithium market prices. MIN's mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth. The company is well positioned to execute its next phase of growth with potential to reinstate fully franked dividends."

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

Brent crude surged to US$114 by the end of April per barrel as the US-Iran conflict escalated. It then crashed in May as ceasefire talks briefly raised hopes of a resolution.

This week, oil is climbing again as tensions in the Middle East continue to escalate.

The US Energy Information Administration's June 2026 Short-Term Energy Outlook, released this week, forecasts Brent prices averaging $105 per barrel in June and July.

This is based on the assumption that the Strait of Hormuz remains closed to most shipping traffic.

For investors in ASX energy shares, that forecast is very important.

Here is how it translates into real dollars for the three biggest names in the sector.

Woodside Energy Group Ltd (ASX: WDS)

Woodside Energy Group is Australia's largest listed energy company and the most direct way to play the oil price story for energy shares.

Every sustained increase in the oil price flows almost directly into Woodside's revenue given its relatively fixed cost base for LNG and oil production.

Woodside soared last week, touching a three-month share price high of $25.88 on Friday. This was due to the recovery of oil prices on renewed Middle East tensions.

The company's Scarborough LNG project is now 94% complete with first cargo targeted for Q4 2026. This means Woodside is entering a phase where its major capital investments are beginning to generate cash flow.

A sustained oil price at $105 per barrel, as the EIA forecasts, would deliver significant uplift to Woodside's second-half FY2026 earnings.

To support this optimism, UBS forecasts Woodside's FY2026 dividend at approximately 109 US cents per share. The broker forecasts more upside if oil prices remain elevated through the second half.

Santos Ltd (ASX: STO)

Santos is Australia's second largest oil and gas producer and has been one of the standout performers on the ASX in 2026.

The company's Barossa LNG project is producing at 75% of its planned 2026 production rates, with plateau production targeted before year end.

Santos delivered first oil from its Pikka Phase 1 development in Alaska in late May 2026, adding a new production stream as oil prices are recovering.

In Q1 2026, Santos reported sales revenue of $1.27 billion, up 3% on the prior quarter. This was driven by stronger crude oil prices and higher LNG volumes.

A sustained oil price above $100 per barrel through the second half of 2026 would improve Santos's cash generation and dividend capacity relative to current analyst estimates.

Beach Energy Ltd (ASX: BPT)

Beach Energy offers the most leveraged and concentrated play on rising oil prices among the three. This is due to its smaller size and higher sensitivity to oil price movements relative to production costs.

The company posted a strong operational Q3 FY2026 update with production rising 7% quarter on quarter to 4.8 million barrels of oil equivalent.

Meanwhile, its Waitsia Gas Plant in Western Australia is ramping toward full capacity.

Beach has strengthened its balance sheet significantly, with available liquidity rising to $974 million and net gearing falling to just 11%. This should give it the financial resilience to navigate price volatility while still paying dividends to shareholders.

The key risk for Beach is that its smaller scale and Western Australia gas exposure means it benefits less from global oil price movements than Woodside or Santos.

Bell Potter maintains a hold rating on Beach Energy with a $1.15 price target. The borker noted that production growth should return in FY2027 as capital expenditure eases.

Foolish takeaway for ASX energy shares

Oil is back on the up and the EIA is forecasting $105 for June and July.

The Strait of Hormuz remains effectively closed.

Woodside, Santos, and Beach Energy are all positioned to capture higher oil prices through their existing production profiles.

For investors comfortable with commodity price volatility, the current environment is arguably the most supportive for ASX energy shares it has been all year.

The post Oil prices are back in focus. Here's what that means for ASX energy shares appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to edge higher

The Australian share market looks set for a better day on Wednesday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher. In the United States, the Dow Jones rose 0.15%, but the S&P 500 fell 0.25% and the Nasdaq dropped 1%.

Oil prices tumble

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 3.2% to US$88.31 a barrel and the Brent crude oil price is down 2.85% to US$91.54 a barrel. This was driven by news that traffic is increasing in the Strait of Hormuz.

Wesfarmers update

All eyes will be on Wesfarmers Ltd (ASX: WES) shares on Wednesday when the conglomerate holds its strategy briefing day event in Sydney. Ahead of the event, Morgans recently upgraded the Bunnings owner's shares to an accumulate rating. It said: "In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team. Amid ongoing geopolitical uncertainty and cost-of-living pressures, its retail divisions (Bunnings, Kmart Group, Officeworks, Priceline) are well-placed to grow due to their strong value propositions. A sustained improvement in lithium prices should also support earnings over the medium term."

Gold price drops

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.8% to US$4,282.9 an ounce. Traders were selling gold ahead of the release of US inflation data and on increasing rate hike bets.

TechnologyOne shares downgraded

Bell Potter is calling time on the TechnologyOne Ltd (ASX: TNE) share price rally. This morning, the broker has downgraded the enterprise software provider's shares to a hold rating (from buy) with an improved price target of $34.25 (from $32.25). It said: "Our updated TP of $34.25 is <15% premium to the share price so we downgrade our recommendation to HOLD. We now see the stock as reasonable value on FY26 and FY27 PE ratios of 66x and 55x respectively. We do see Technology One as one of if not the best quality large cap SaaS company on the ASX but we note it is already trading at almost double the FY26 and FY27 PE ratios of WiseTech (ASX: WTC) on 35x and 28x."

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Tuesday after returning from the public holiday? Here are five things to watch:

ASX 200 to sink

The Australian share market looks set to sink on Tuesday after a selloff on Wall Street on Friday and a mixed session on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 86 points or 1% lower. In the United States, the Dow Jones fell 0.15%, but the S&P 500 climbed 0.3% and the Nasdaq pushed 0.85% higher.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.75% to US$91.22 a barrel and the Brent crude oil price is up 1.2% to US$94.20 a barrel. This was driven by an escalation in tensions in the Middle East.

REA shares downgraded

REA Group Ltd (ASX: REA) shares will be in focus today after the team at Bell Potter put out a bearish broker note. According to the note, the broker has downgraded the property listings company's shares all the way from a buy rating to a sell rating with a heavily reduced price target of $137.00 (from $217.00). It said: " We downgrade our recommendation to Sell (prev. Buy). REA currently trades around 28x FY27e P/E, which is a level it has historically only traded at during EPS declines; VA consensus currently anticipates 14% EPS growth in FY27 (BPe: -2%). REA also appears expensive against other ASX classifieds on a FCF growth basis at 1.7x EV/FCFg in FY27e."

Gold price softens

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price softened overnight. According to CNBC, the gold futures price is down 0.3% to US$4,352.6 an ounce. Rising oil prices, inflation, and rate hike concerns have weighed on the precious metal.

Buy Eagers shares

Eagers Automotive Ltd (ASX: APE) shares have been given the thumbs up by the team at Bell Potter. This morning, the broker has retained its buy rating with a slightly trimmed price target of $28.00 (from $28.75). It said: "In our view the stock looks reasonable value trading on PE ratios of c.20x and 17x in 2026 and 2027 where the latter is the first full year of the CanadaOne investment (so is the more relevant in our view). We also see the recent trading update at the AGM as effectively "cleansing" the market as the H1 result has now been largely flagged – so there should be no surprises."

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

I always think that when markets look uncertain, it's a good idea to review your share portfolio and make sure your investments are in the right place.

Here are two ASX 200 shares I'd buy this month, and one I'd sell.

I'd buy Catalyst Metals Ltd (ASX: CYL) shares

Catalyst Metals shares are down around 2% at the time of writing on Thursday morning, and are trading at $5.28 a piece. The drop means the shares are now around 29% lower for the year to date and 26% lower than 12 months ago.

It's been a volatile run for the ASX gold producer this year. Its share price spiked to an all-time high in January after it announced a significant new high-grade discovery at its Plutonic Gold Belt. 

But it has lost around 44% of its value ever since. The downturn is likely due to a significant increase in mining costs and a weaker ASX gold sector after a strong run late last year. Fluctuating sentiment has led many investors to sell their gold shares and rotate into larger, more stable assets. 

But Catalyst Metals has shown a long period of operational consistency and organic growth. The miner expects production to increase towards the latter half of FY26 as well. 

It also posted a positive drilling update in early May. The results included visibility of a potential mine life of more than 10 years at approximately 60,000 ounces per annum.

I think the Catalyst Metals' share price will rebound soon enough, and I'd buy in the dip while they're still going for cheap.

Analysts rate the ASX 200 shares as a strong buy and tip an average target price of $13.75. That implies a potential 160% upside at the time of writing.

I'd buy Guzman Y Gomez (ASX: GYG) shares

The Mexican-themed fast-food restaurant chain's shares hit a historic low in early April but have since rebounded 25%. At the time of writing, the ASX consumer discretionary shares are changing hands for $19.05 a piece. The shares are still 12% lower year to date and 37% lower than a year ago.

After multiple headwinds and sombre sentiment so far this year, Guzman Y Gomez shares look like they have finally changed course. The latest rebound comes on the back of news that the company closed its struggling US stores to focus its business expansion on Asia and Australia.

The company's long-term goal remains to reach 1,000 restaurants in Australia, with segment EBITDA at 10% of network sales. Its Singapore expansion has already become successful, and it looks like the company can quickly build its presence in the right markets.

Most analysts rate the ASX 200 shares as a buy and tip a 28% upside to an average $24.53 target price, at the time of writing.

I'd sell Beach Energy Ltd (ASX: BPT) shares

Beach Energy shares are slightly higher today, up around 0.2% to $1.10 at the time of writing. The oil and gas exploration and production company's shares are now around 7% lower year to date and 20% lower than 12 months ago.

While the oil and gas explorer and producer's shares flew higher off the back of geopolitical tensions in March, they tumbled just as quickly.

Investor sentiment was slashed when the company posted its third-quarter update in April. It revealed softer sales, a guidance downgrade, and ongoing operational disruptions. 

The update spooked investors, and now many are worried about the company's earnings outlook.

The majority of brokers have a sell rating on the shares. But the $1.12 average target price still implies a potential 3% upside, at the time of writing.

The post 2 ASX 200 shares I'd buy and 1 I'd sell this month appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set for a better day on Wednesday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% higher. In the United States, the Dow Jones rose 0.45%, but the S&P 500 rose 0.15% and the Nasdaq edged slightly higher.

Oil prices rise

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$93.54 a barrel and the Brent crude oil price is up 0.9% to US$95.87 a barrel. This has been driven by concerns over rising tensions between the US and Iran.

Buy 4D Medical shares

Bell Potter remains bullish on 4DMedical Ltd (ASX: 4DX) shares. This morning, the broker has retained its speculative buy rating on the medical technology company's shares with an improved price target of $6.00 (from $4.85). It said: "The clinical data from the CLEAR study will provide the necessary evidence to further support broad adoption for diagnosis of PE [Pulmonary Embolism]. Outpatient reimbursement will continue under the existing category III CPTA codes paid at US$650/scan. TAM for this market is estimated at $2.5bn annually."

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent session on Wednesday after the gold price rose overnight. According to CNBC, the gold futures price is up 0.3% to US$4,519.2 an ounce. Traders appear to believe the precious metal has been oversold.

Hold Graincorp shares

Bell Potter thinks Graincorp Ltd (ASX: GNC) shares are fully valued. This morning, the broker has retained its hold rating on the grain exporter's shares with a reduced price target of $5.20 (from $5.90). It said: "In the June report we noted a seven year low in east coast winter crop acreage sown and a seven year low in southeastern (VIC/NSW/SA) canola production. Key months are now the August-September window, which are crucial for yield development in a potentially dryer backdrop."

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

When markets are volatile, it's important to know which ASX 200 shares are good investments and which have a weaker outlook.

Here are 5 ASX 200 shares that brokers rate as a sell, according to Market Index data.

Westpac Banking Corp (ASX: WBC)

Westpac shares are down around 2% at the time of writing to $35.44 each. The banking giant's shares are now around 9% lower year to date but still 10% higher than 12 months ago. The bank posted a solid first-half result in early May, but broad bank sector weakness has still pulled the shares lower. Westpac shares came under additional selling pressure last month after a court ruling weighed on sentiment. It looks like Westpac shares could still be overvalued. The majority of brokers rate Westpac shares as a strong sell and tip a 4% downside to an average target price of $33.97 over the next 12 months.

Sonic Healthcare Ltd (ASX: SHL)

Sonic shares hit a multi-year low in late May and have continued to regain any meaningful momentum. At the time of writing, the shares are down around another 2.5% to $18.78 each. For the year to date, the ASX 200 healthcare shares are down around 16% and are 30% lower than this time last year. Sonic has been caught up in the sector-wide rotation away from ASX healthcare shares this year, and it has also faced some company-specific headwinds. The team at Ord Minnett thinks the company could be negatively affected by proposed changes to medical fees in Germany and notes that it lacks organic growth. Market Index data shows a combined sell rating. But after last month's sell-off, the average target price still implies a potential 13% upside, at the time of writing.

Bank of Queensland Ltd (ASX: BOQ)

The mid-tier ASX 200 bank's share is down around 1% at the time of writing, to $6.13 a piece. The decline means the shares are down around 7% year to date and 22% from 12 months ago. The bank posted a weaker-than-expected first-half FY26 result in April and flagged tougher conditions for the remainder of the year. Investors reacted negatively, and analysts revised their outlooks following the announcement. Market Index data shows brokers have a sell rating on the shares. The average target price of $6.14 is just one cent above the current trading price at the time of writing.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares are down around 0.5% on Tuesday afternoon, to $162.56 each. The shares are now around 1% higher year to date but nearly 8% lower than 12 months ago. The ASX 200 banking giant's shares dropped 14% in mid-May after it posted a disappointing third-quarter capital update. But after a sharp sell-off, investors quickly bought back into the stock. The banking giant seems to be supported by a flight to quality. In unstable markets, investors often rotate into large companies with stable dividends and dominant market positions to mitigate volatility. But it looks like brokers still see the ASX 200 bank shares as overpriced. They rate CBA shares as a strong sell and tip a 23% downside to an average target price of $124.20, at the time of writing. 

Beach Energy Ltd (ASX: BPT)

Beach Energy shares are slightly higher today, up around 0.2% to $1.10 at the time of writing. The oil and gas exploration and production company's shares are just over 6% lower year to date and 18% below their 12-month trading levels. Beach Energy posted its third-quarter update in April, which revealed softer sales, a guidance downgrade, and ongoing operational disruptions. The update spooked investors, and now many are worried about the company's earnings outlook from here. The majority of brokers have a sell rating on the shares, but the average $1.12 target price implies a small 2% upside at the time of writing.

The post Brokers rate these 5 ASX 200 shares as a sell! appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set to fall on Tuesday despite a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.35% lower. In the United States, the Dow Jones rose 0.1%, but the S&P 500 climbed 0.25%, and the Nasdaq pushed 0.4% higher.

Oil prices jump

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a strong session after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5.75% to US$92.42 a barrel and the Brent crude oil price is up 4.6% to US$95.29 a barrel. This follows reports that Iran has ended peace talks and vowed to block the Strait of Hormuz.

BHP and Rio Tinto on watch

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares will be on watch on Tuesday after a strong night of trade for their NYSE-listed shares. Both mining giants rose over 2% and ended the session within touching distance of new record highs. This appears to have been driven by another solid rise from copper prices overnight.

Gold price tumbles

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session after the gold price tumbled overnight. According to CNBC, the gold futures price is down 1.7% to US$4,513.9 an ounce. Traders were selling gold after US-Iran peace talks abruptly ended and sent oil prices hurtling higher, sparking inflation and rate hike fears.

Buy Artrya shares

Artrya (ASX: AYA) shares could offer strong returns according to analysts at Bell Potter. This morning, the broker has retained its buy rating and $6.10 price target on the healthcare AI stock. This implies potential upside of almost 30% for investors over the next 12 months. It said: "The recognition of CCTA image analysis by CMS and Physicians to efficiently and effectively detect and diagnose CAD is a huge growth driver for image analysis providers. CCTA utilisation is surging and this provides a strong foundation for AYA's superior product features to capture material market share over our forecast horizon."

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

Indeed, Woodside shares fell a sharp 8.6% in the month just past, closing May trading for $30.66 apiece.

Santos shares fared the best among the big ASX 200 oil and gas stocks, sliding 2.4% in May to close on Friday trading for $7.81 each.

Rounding out the list, Beach Energy Ltd (ASX: BPT) shares slumped 8.5% in May to $1.08, while Karoon Energy Ltd (ASX: KAR) shares trailed the pack, sinking 10.5% over the month to close on Friday trading for $1.96 apiece.

Why did ASX 200 energy stocks tumble in May?

The common headwind battering all of the ASX 200 energy stocks in May was the big retrace in global energy prices.

As you're likely aware, oil and gas prices went through the roof in the weeks following the outbreak of the Iran war at the end of February. Indeed, Brent crude oil rocketed from US$72 per barrel on 27 February and was still trading for US$114 per barrel on 30 April.

That big lift saw investors piling into the likes of Woodside shares – which I should note remain up more than 29% year to date despite the May decline. And that's not including the 83.5 cents per share final fully franked dividend Woodside paid eligible stockholders on 27 March.

But with the United States and Iran actively engaged in peace negotiations in May, Brent crude oil fell almost 20% over the month to US$92 per barrel, according to data from Bloomberg. And investors reacted by trimming their positions in the big ASX 200 energy stocks.

Why did Santos shares outperform in May?

Santos shares – also still up 26.8% year to date without including the final dividend payout – lost significantly less than the other ASX 200 energy stocks over the month just past.

This outperformance over Beach, Karoon and Woodside shares may have been driven by a few positive updates from the company.

On 18 May, for example, Santos shares closed up 2.7% after the company announced the first oil production from its Pikka phase 1 projected, located in the US state of Alaska.

With first oil flowing, Santos said it was working to increase production to 20,000 barrels per day (bpd) over the following weeks.

"Alaska has a huge runway ahead of it which will underpin value-accretive production growth for Santos for the long term," Santos CEO Kevin Gallagher said.

"The Pikka phase 1 project has demonstrated Santos' capability to develop this world-class resource safely, responsibly and efficiently.," he added.

The post Why ASX 200 energy stocks like Woodside and Santos got hammered in May appeared first on The Motley Fool Australia.

The analyst teams at both Macquarie and Bell Potter have upgraded their price targets for the company on the back of the deal, which we'll look at shortly.

First, let's have a closer look at the deal.

Major gas resource purchased

Amplitude announced that it would acquire 50% of the Artisan gas resource in the Offshore Otway Basin, with the project to feed into Amplitude's East Coast Supply Project (ECSP).

The company will pay Beach Energy $58.3 million plus a royalty of $3.75 per gigajoule of gas produced, capped at 62 petajoules.

Amplitude Managing Director Jane Norman said the deal would accelerate the production of Artisan's resource and improve the economics of the ECSP.

She added:

Producing Artisan through Amplitude Energy's existing infrastructure allows faster and lower-cost development of this gas for the east coast domestic market. Artisan development costs will significantly benefit from leveraging the existing ECSP program and our readily-available infrastructure. This is a win-win for Amplitude, O.G. Energy and Beach with respect to optimising our respective Otway Basin positions.   

O.G. Energy will acquire another 10% of Artisan as part of the deal to become a 50% holder in the resource.

Ms Norman said Amplitude expected to move rapidly to a final investment decision on the development phase of the ECSP over the next few months while the drilling of the Annie and Juliet wells is conducted.

She added:

Annie and Artisan together provide the base resource for the ECSP, with project economics potentially further improved by Juliet and/or Nestor discoveries. This transaction provides significant value and optionality for the ECSP and provides customers with certainty in an uncertain market

Shares looking cheap

Bell Potter said in a research note to clients this week that the deal derisks the ECSP through adding scale and reducing the reliance on exploration success at Juliet and Nestor.

They said:

Artisan more than doubles ECSP gas reserves, enabling 60TJ/day gross production over an initial 5-year period. With the ECSP expected to produce from 2H 2028, there are no changes to our earnings estimates. Our valuation is upgraded on lower risking assumptions.

Bell Potter has upgraded its price target for Amplitude shares from $2.70 to $2.90. This materially above Wednesday's close price of $1.76.

Macquarie also ran the ruler over the deal, and said they now had greater confidence in Amplitude being able to produce 90 terajoules per day through its Athena gas plant in 2028.

They added:

We continue to believe AEL is oversold following disappointing drilling outcomes; adding Artisan to the ECSP increases project certainty (irrespective of drilling outcomes at Juliet & Nestor), strengthening the pathway to CY28 growth.

Macquarie increased its price target to $3 per share.

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Here's the latest update from each energy stock, and what brokers expect next.

Buy Ampol shares

Ampol shares are trading in the red on Wednesday afternoon. At the time of writing, the petroleum distribution and retailer's shares are down around 0.4% to $33.57. The shares have now slumped nearly 5% since the ASX opened on Monday morning. 

For the year-to-date, however, Ampol shares are up over 4%, and they're 30% higher than this time last year.

The company's shares climbed higher on the back of conflict in the Middle East and concerns about global oil supply earlier this year. 

Ampol has also posted a few recent updates that have gathered investor attention. In April, the Aussie fuel supplier said it had submitted a formal remedy offer to the Australian Competition and Consumer Commission (ACCC) about a proposed acquisition of fuel and convenience store operator EG Australia. 

The company also confirmed a 10% increase in refinery production, higher refiner margins, and increased production in its Q1 FY26 trading update. 

Ampol has locked in diesel and jet fuel supply through to the end of May, and gasoline supplies to the end of June, despite rising landed crude costs. 

Brokers rate the stock as a strong buy, and the $35.80 average target price implies a potential 7% upside from here.

Hold Woodside shares

Woodside shares have also slumped slightly on Wednesday, down around 0.5% to $30.58 at the time of writing.

The shares have been resilient this year, however, climbing over 29% for the year-to-date and 43% over the past 12 months.

Unsurprisingly, the oil and gas giant's share price rally accelerated in early March, as conflict between the US and Iran intensified.

Woodside shares have rallied off the volatility around oil supply concerns, and even though conflict in the Middle East has cooled, the area is still highly volatile, and the movement of oil in the region is still uncertain.

It's not just market demand driving the company's shares higher, either. Woodside grabbed headlines in April when it posted a 7% quarter-on-quarter increase in operating revenue and a 8% hike in revenue for the first quarter of FY26. 

But it looks like analysts are concerned that the share price could be at, or approaching, its peak. If the US and Iran strike a deal to resume oil movement in the Middle East, it could have a headwind effect on Woodside shares.

They rate the stock as a hold with an average 10% upside to $33.34, at the time of writing. 

Sell Beach Energy shares

Beach Energy shares are also in the red at the time of writing, down around 1% to $1.08 a piece. While the oil and gas explorer and producer's shares flew higher off the back of geopolitical tensions in March, they tumbled just as quickly.

The shares are now down over 7% year-to-date and around 18% lower than this time last year.

Beach Energy posted its third-quarter update in April, which revealed softer sales, a guidance downgrade, and ongoing operational disruptions. The update spooked investors, and now many are worried about whether the company can consistently grow earnings from here.

Even news this week that it has agreed to sell its 60% operated interest in licence VIC/P35, which includes the Artisan gas discovery, hasn't slowed the selloff. 

Brokers aren't thrilled either. 

They rate the stock a sell, with an average target price of $1.12. That implies around a 2% downside at the time of writing.

The post Beach Energy, Ampol and Woodside shares: 1 to buy, 1 to hold and 1 to sell appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to slip

The Australian share market looks set to edge lower on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower. In the United States, the Dow Jones fell 0.25%, but the S&P 500 rose 0.6% and the Nasdaq jumped 1.2%.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 3.4% to US$93.29 a barrel and the Brent crude oil price is up 3.3% to US$99.29 a barrel. This was driven by concerns over rising tensions between the US and Iran.

Goodman shares given buy rating

In response to the third-quarter update from Goodman Group (ASX: GMG), Bell Potter has retained its buy rating on the industrial property giant's shares with a trimmed price target of $35.50. It said: "While we do have some question marks vis-à-vis leasing progress, extension of timelines and associated impact on earnings mix and booking of profits, the moat around the haves and have nots for scaled data centre players appears to be widening, recognising the scale and complexity of execution."

Gold price softens

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.3% to US$4,510 an ounce. This reflects concerns that higher fuel prices will drive inflation and push interest rates higher.

Buy Life360 shares

Bell Potter thinks Life360 Inc. (ASX: 360) shares are undervalued. This morning, the broker has retained its buy rating on the location technology company's shares with an improved price target of $33.00. It said: "Key focus for us is the Q2/H1 result in August and, firstly, a strong rebound in MAU growth but secondly, and more importantly, another quarter of strong paying circle growth where anything approaching or up around 200k again would be bullish in our view."

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set to rise again on Tuesday following a strong night in Europe. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.25% higher. In the United States, Wall Street was closed for the Memorial Day holiday. But in Europe, the DAX rose 2%, the CAC climbed 1.75%, and the FTSE pushed 0.2% higher.

Oil prices sink

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Tuesday after a poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 6.5% to US$90.30 a barrel and the Brent crude oil price is down 7% to US$96.30 a barrel. This was driven by optimism that the US and Iran could soon sign a peace deal and reopen the Strait of Hormuz.

Goodman results

All eyes will be on Goodman Group (ASX: GMG) shares on Tuesday when the industrial property giant releases its third-quarter results. The market is expecting Goodman to reaffirm its FY 2026 guidance for earnings per share growth of 9%. However, the team at Morgan Stanley sees scope for management to upgrade its guidance because of some key transactions that have occurred since its last update.

Gold price storms higher

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Tuesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.1% to US$4,573.6 an ounce. The gold price rose in response to easing oil prices, which has reduced interest rate hike expectations.

Wesfarmers shares upgraded

Wesfarmers Ltd (ASX: WES) shares are good value according to analysts at Morgans. The broker has upgraded the Bunnings owner's shares to an accumulate rating (from trim) with a slightly improved price target of $81.10 (from $80.50). It said: "WES's share price has fallen 9% over the past 12 months and 7% over the past 6 months. The stock is now trading on a more reasonable 26.5x FY27F PE compared to a peak one-year forward multiple of ~37x in August 2025. […]  In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team. Amid ongoing geopolitical uncertainty and cost-of-living pressures, its retail divisions (Bunnings, Kmart Group, Officeworks, Priceline) are well-placed to grow due to their strong value propositions. A sustained improvement in lithium prices should also support earnings over the medium term."

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

Amplitude Energy shares closed on Friday trading for $1.675. In early morning trade on Monday, shares are changing hands for $1.66 apiece, down 0.90%.

For some context, the ASX 300 is up 0.1% at this same time, while the S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.1% following a retrace in oil prices over the weekend.

Amplitude Energy shares are outpacing the broader energy sector stocks today following news of a major gas field acquisition from Beach Energy Ltd (ASX: BPT).

Here's what's happening.

ASX 300 energy stock growing its offshore gas footprint

Amplitude Energy shares are getting plenty of attention today after the company announced that it has entered into a binding agreement to acquire a 50% interest in Beach Energy's VIC/L35 permit.

The permit area contains the Artisan gas field in the Offshore Otway Basin, situated off Australia's southern coast.

As part of the agreement, O.G. Energy will purchase a 10% interest in Artisan on the same terms. That will see O.G Energy and Amplitude Energy each holding a 50% interest in the gas field.

The ASX 300 energy stock noted that the field is located just 17 kilometres from the existing Offshore Otway Basin pipeline.

Amplitude Energy will pay $58.3 million cash for the asset, which it said will be fully funded through existing sources.

The agreement will also see Beach Energy receive a future production royalty of $3.75 per gigajoule (GJ) for 60% of all gas produced before 30 June 2036, up to 62 petajoules (PJ).

The total implied transaction value of the agreement was reported to be approximately $130 million after tax.

Amplitude said it expects the acquisition to be net asset value (NAV) accretive and earnings accretive from the commencement of production from Artisan. The ASX 300 energy stock is accelerating targeted gas production to 2028.

The agreement remains subject to certain conditions precedent.

What did Amplitude and Beach Energy management say?

Commenting on the acquisition that's yet to lift the ASX 300 energy stock today, Amplitude CEO Jane Norman said, "Producing Artisan through Amplitude Energy's existing infrastructure allows faster and lower-cost development of this gas for the east coast domestic market."

Norman continued:

Artisan development costs will significantly benefit from leveraging the existing ECSP program and our readily-available infrastructure. This is a win-win for Amplitude, O.G. Energy and Beach with respect to optimising our respective Otway Basin positions.

Beach Energy CEO Brett Woods added:

This transaction demonstrates Beach's capital discipline, monetising Artisan while preserving exposure to future development through the production royalty.

It is also a positive outcome for Otway participants and domestic customers, with the gas still expected to be developed into the East Coast market through the Athena Gas Plant.

The post Guess which ASX 300 energy stock just announced a major Beach Energy gas acquisition appeared first on The Motley Fool Australia.

At the time of writing, the Beach Energy share price is down 2.04% to $1.107.

The move adds to a weaker stretch for shareholders. Beach Energy shares are down around 7% over the past month and 14% over the past year.

Let's dive right in.

Beach sells part of its Otway position

According to the release, Beach Energy has agreed to sell its 60% operated interest in licence VIC/P35, which includes the Artisan gas discovery.

The buyer is Amplitude Energy Ltd (ASX: AEL), which will pay $70 million in cash when the transaction completes.

Beach will also receive a production royalty of $3.75 per gigajoule on all gas produced from the licence before 30 June 2036.

Based on the current 2C resource booking, Beach said the royalty payments are expected to total about $140 million over the life of the field.

The company said the transaction has an implied value of about $130 million after tax, or roughly $3.50 per gigajoule of 2C contingent resource.

The deal remains subject to several conditions, including regulatory approvals.

Where the capital is going instead

Beach is also changing how it wants to spend capital in the Otway Basin.

The company said it will no longer drill and complete the La Bella 2 development well, or pursue the development of Artisan through the Otway Gas Plant.

That decision frees up more than $500 million of capital that had previously been expected across Artisan and La Bella.

Management said the money can now be directed towards opportunities with stronger returns and lower development costs.

Beach is effectively cashing in part of its Otway portfolio instead of spending heavily to develop every asset itself.

It still keeps exposure through the royalty, while Amplitude takes on the development pathway.

Beach said Amplitude intends to develop Artisan through the Athena Gas Plant.

What comes next

The company said the Otway Gas Plant still has backfill options through lower-cost nearshore prospects and longer-dated offshore opportunities.

Managing Director and CEO Brett Woods said the deal reflects Beach's focus on capital discipline. He said it turns development value into cash while leaving the company with royalty exposure.

After a difficult year for the share price, investors now have something practical to weigh up.

Beach gets cash from the sale, avoids more than $500 million in expected capital spending, and still has a way to benefit if Artisan is developed.

The next question is where that money goes.

The post This beaten-down ASX 200 energy share is slipping despite a major update appeared first on The Motley Fool Australia.

What did Beach Energy report?

• Sold 60% operated interest in VIC/L35 (Artisan gas discovery) for $70 million upfront
• Production royalty of $3.75/GJ nominal, equating to about $140 million over the life of the field
• Total implied transaction value of approximately $130 million after tax (~$3.50/GJ 2C Contingent Resources)
• Over $500 million in capital released for redeployment into higher-return opportunities
• La Bella 2 development well will not proceed

What else do investors need to know?

The transaction with Amplitude Energy and O.G. Otway enables Beach Energy to monetise the Artisan discovery, while keeping future economic exposure through royalty payments. Completion of the deal is expected in the first quarter of FY27, pending regulatory approval.

Importantly for shareholders, not proceeding with the La Bella 2 drilling frees up more than $500 million in capital that can now be directed to opportunities offering higher returns and lower development costs. Beach retains optionality for further developments in the Otway Basin, including nearshore backfill and offshore prospects, and may consider third-party gas tolling.

What did Beach Energy management say?

Beach Managing Director and CEO Brett Woods said:

This transaction demonstrates Beach's capital discipline, monetising Artisan while preserving exposure to future development through the production royalty. It is also a positive outcome for Otway participants and domestic customers, with the gas still expected to be developed into the East Coast market through the Athena Gas Plant. Importantly, the optimisation of our Otway Basin portfolio unlocks more than $500 million of capital previously planned for FY26 to FY29 and enables us to redeploy that capital into opportunities with stronger returns and lower development cost. We continue to see compelling Otway backfill options through low-cost nearshore prospects and longer-dated offshore opportunities of scale, supporting our strategy to be a low-cost, high-margin producer.

What's next for Beach Energy?

Beach Energy expects to complete the transaction in Q1 FY27, assuming required approvals are met. The company plans to redeploy released capital into growth prospects that offer higher returns and aim to bolster its position as a low-cost, high-margin gas producer.

Looking forward, Beach Energy remains focused on optimising its asset portfolio through strategic development and continues to evaluate Otway Basin opportunities, including low-cost nearshore projects and potential third-party partnerships.

Beach Energy share price snapshot

Over the past 12 month, Beach Energy shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

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The WTI crude oil price hit US$105.42 a barrel last Friday, up more than 4% in a single session, as escalating Middle East tensions raised fears of supply disruptions.

For ASX energy investors, the question is straightforward: which ASX stocks stand to gain the most?

Santos Ltd (ASX: STO)

Santos is Australia's second largest oil and gas producer and one of the most direct ways to play rising oil prices on the ASX.

The company operates assets across Australia, Papua New Guinea, Timor-Leste, and Alaska.

Every dollar rise in the oil price flows almost immediately into higher realised revenue for the company.

In Q1 2026, Santos reported a 3% rise in sales revenue to US$1.27 billion, with a 6% jump in average pricing more than offsetting slightly softer volumes.

Santos shares are up more than 30% since the start of the year, reflecting the energy price tailwind.

However, the stock still trades at a discount to many of its global peers.

Woodside Energy Group Ltd (ASX: WDS)

Woodside Energy Group is one of Australia's largest listed energy companies.

The company has a market capitalisation of approximately $60 billion and major operations spanning Western Australia, the Gulf of Mexico, and other international regions.

Because Woodside sells its production into global energy markets, stronger crude prices translate directly into higher realised prices, stronger operating cash flow, and improved shareholder returns.

In Q1 2026, Woodside posted a 7% quarter-on-quarter increase in operating revenue to US$3.26 billion, driven by an 11% increase in its average realised price to US$63 per barrel of oil equivalent.

The company's Scarborough Energy Project is 94% complete, with first LNG still targeted for Q4 2026, which should add materially to earnings once the project becomes operational.

Beach Energy Ltd (ASX: BPT)

Beach Energy offers a more leveraged and higher-risk play on rising oil and gas prices.

The potential upside is therefore also higher.

The company posted a 7% lift in production to 4.8 million barrels of oil equivalent in Q3 FY2026, with quarterly sales revenue of $419 million supported by a 19% lift in realised oil prices.

The ramp-up of the Waitsia Gas Plant in Western Australia has been the standout operational development, with production rates returning to above 200 terajoules per day after earlier weather and compressor setbacks.

Moreover, Beach Energy has strengthened its balance sheet, with available liquidity rising to $974 million and net gearing falling to just 11%.

Bell Potter highlights some risks for Beach Energy but maintains a hold rating with a $1.15 price target.

The broker noted that production growth should return in FY27 as capex eases, enabling positive free cash flow and ongoing dividends.

Foolish takeaway

Oil prices remain highly sensitive to geopolitical events and can reverse quickly.

However, with Middle East tensions showing little sign of easing and supply concerns persisting, Santos, Woodside, and Beach Energy each offer a different risk and return profile for investors wanting exposure to elevated energy prices.

The post 3 ASX stocks that could benefit from oil prices hitting US$105 a barrel appeared first on The Motley Fool Australia.