News wire — Australian energy stocks bore the brunt of fears of a further decline in oil prices after U.S. President Donald Trump’s reciprocal tariffs rattled global markets.
The energy sub-index lost 7.6% as of 0434 GMT, diving to its lowest since November 10, 2020, and was on track for what could be its worst day in over five years.
The broader ASX200 benchmark index shed 2.3% to its nearly eight-month low of 7,681.1 points.
Following Trump’s announcement, eight OPEC+ countries agreed to advance their plan for oil output hikes, a move that could pressure prices.
Sector major Woodside Energy lost almost 9%, falling to its lowest since November 29, 2021. The stock was set for its worst day in over five years.
Smaller peer and once a takeover target, Santos shed 8.6%, its worst intraday percentage fall in over five years. Oil and gas explorers Karoon Energy and Beach Energy declined 11.4% and 10%, respectively.
The stocks “are likely to suffer for as long as the markets are pricing in higher and higher probabilities of a U.S. recession”, Kyle Rodda, a senior financial analyst with Capital.com, said, adding to the bearish sentiment.
Global oil prices continued their decline in early Asian trade, after Thursday’s more than 6% slump, the steepest in three years.
The downturn was fueled by concerns that the fresh U.S. tariffs could further escalate the global trade war and potentially dampen oil demand.
In Australia, which has been slapped with a 10% duty – equivalent to the U.S. baseline tariff on all imports, investors are scrambling to safer bets such as consumer staples, sparking a frantic sell-off that sent the stocks plummeting.
Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sumana Nandy – Reuters
