市场见解

Why ASX oil stock prices are set to slide this morning

The market is poised to open weaker this morning but ASX oil stocks are likely to come under even more pressure as oil is testing key support
The post Why ASX oil stock prices are set to slide this morning appeared first on Motley Fool Australia. –

barrel of oil sitting on top of falling red arrow representing asx energy shares

The market is poised to open weaker this morning but ASX oil stocks are likely to come under even more pressure.

Futures pricing is tipping a 1% drop in the S&P/ASX 200 Index (Index:^AXJO) on Wednesday on a poor overnight lead from Wall Street.

The 3.3% thumping in the Brent crude price to a two-week low of US$41.03 a barrel will add to the pain for oil-exposed stocks.

ASX oil stock prices on slippery slope

These include the 能源 - 伍塞德石油 (ASX: WPL) share price, 桑托斯集团 (ASX: STO) share price, Oil Search Limited (ASX: OSH) share price and Origin能源 (ASX: ORG) share price – just to name a few.

The oil price is testing the psychologically important 100-day moving average, according to Bloomberg. A break below that could pave the way for the commodity to slip even lower in the near-term.

Short-term pressure on the oil price

The weakness comes as a resurgent wave of new COVID-19 cases dominate headlines. The official global number of deaths from the pandemic exceeds one million and New York is looking like the latest hotspot.

The reintroduction of social restrictions will curtail movement and that means weak oil demand, and this isn’t the only short-term challenge the market’s facing.

There are reports that Russia is likely to pump more than the agreed quota it promised OPEC. Members of the oil cartel will be under pressure to lift supply too to make up for the huge revenue shortfall.

ASX energy stocks are in for a rough ride.

Little good news for medium to long-term outlook

Compounding the near-term gloom are downbeat medium-term forecasts for oil. Three of the world’s largest independent oil traders warn that consumption won’t recover in any meaningful way for at least 18 months, reported Bloomberg.

The dour predictions coincide with modelling that shows the peak in demand for oil is only ten or less years away.

Total SE predicted that the demand peak will come around 2030. Mubadala Investment Company, one of the largest state wealth funds of the United Arab Emirates (UAE), echoed the same conclusion.

Meanwhile, Pierre Andurand, chief investment officer and founder of Andurand Capital Management LLP, believes demand growth will come to an end in 2026.

Decarbonising your investment strategy

The silver lining is that ASX energy stocks are far more exposed to gas than to oil. While gas prices are linked to crude, the energy source is seen as a little more enduring.

This is particularly so as the Morrison government is using gas as a stopgap measure in its transition roadmap towards a greener future.

If you haven’t already started thinking about decarbonising your investment portfolio, you really should.

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.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post Why ASX oil stock prices are set to slide this morning appeared first on Motley Fool Australia.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!