Beach Energy Ltd (ASX:BPT) and Santos Ltd (ASX:STO) shares could come under pressure after oil prices crashed lower overnight…
The post Beach, Santos, & Woodside shares on watch after oil prices crash appeared first on The Motley Fool Australia. –
This follows a disappointing night of trade for oil prices which saw the price of both Brent and WTI crude oil crash lower.
Oil prices sank for the fifth day in a row on Thursday night after a strengthening US dollar, a stuttering COVID-19 vaccine rollout, and rising US crude and fuel inventories weighed heavily on sentiment.
According to CNBC, the Brent crude oil price fell 7% to settle at US$63.28 per barrel and the WTI crude oil price settled 7.1% lower at US$60 per barrel.
In respect to inventories, on Wednesday the U.S. Energy Information Administration (EIA) revealed that U.S. crude inventories rose by 2.4 million barrels last week.
Where next for oil?
Tamas Varga from PVM Oil Associates told CNBC that he believes short term factors are weighing on prices and remains positive on oil for the longer term.
He commented: “Short-term developments – stuttering vaccine rollouts and the build in U.S. oil inventories – are driving sentiment, but the longer-term oil outlook is still encouraging. Yesterday’s U.S. Federal Reserve meeting provided a boost to equities … U.S. economic growth has been revised upwards while unemployment is expected to decline.”
One spot of good news for oil prices this morning is that European regulators have found that the AstraZeneca COVID-19 vaccine is not linked to overall increased risk of blood clots.
There were fears that the suspension of this vaccine globally could lead to a return to lockdowns in some regions, tempering expectations for a recovery in fuel use. So, with its rollout likely to restart now, fuel demand could continue its recovery in the coming months.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- 5 things to watch on the ASX 200 on Friday
- Hydrogen far from ‘fool cells’: EV trends and the major ASX players
- 5 things to watch on the ASX 200 on Thursday
- 5 things to watch on the ASX 200 on Wednesday
- 5 things to watch on the ASX 200 on Tuesday
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Beach, Santos, & Woodside shares on watch after oil prices crash appeared first on The Motley Fool Australia.