Australia's energy and gas stocks are doing their part to push the local stock market higher following a strong rebound in the oil price overnight.
West Texas Intermediate (WTI) crude oil rose above US$51 a barrel overnight, an increase of nearly 5%, while Brent crude jumped 4.4% to roughly US$57 a barrel. As reported by The Wall Street Journal, a weak US dollar and severe cold weather contributed to the strong rebound, while in addition Royal Dutch Shell PLC also warned that demand will outpace supply growth this year, easing oversupply concerns.
In fact Brent crude futures closed above US$61 on Friday and oil stocks are likely to receive more strong support on February 16.
Here's how Australia's energy stocks fared on Friday.
- Woodside Petroleum Limited (ASX: WPL) up 3.9%
- BHP Billiton Limited (ASX: BHP) up 4.9%
- Origin Energy Ltd (ASX: ORG) up 5.1%
- Oil Search Limited (ASX: OSH) up 4.1%
- Santos Ltd (ASX: STO) up 4.5%
- Sundance Energy Australia Ltd (ASX: SEA) up 4.1%
While the energy sector remains extremely volatile, conditions certainly seem to have improved over the last fortnight or so which is an encouraging sign for investors.
