Australian oil and gas companies Santos and Woodside Energy both experienced declines of approximately 1.5 per cent on Tuesday, mirroring a two-day slide in global oil prices. Investor sentiment was affected by indications of a potential oversupply in the market and the ongoing repercussions of US sanctions imposed on Russian oil producers.
Brent crude traded above $US65 per barrel, while West Texas Intermediate hovered near $US61. Data indicates that the volume of oil being transported across the world’s oceans has reached record levels, signalling a persistent build-up of surplus supplies. Furthermore, there is speculation that OPEC+, the group of oil-producing nations, might decide to increase production at their upcoming meeting this weekend.
Concerns about a growing surplus are weighing heavily on oil prices, contributing to a likely third consecutive monthly loss. Both OPEC+ and rival oil-producing entities have been increasing their output, exacerbating the existing supply pressures. Santos is an Australian oil and gas exploration and production company. Woodside Energy is an Australian petroleum exploration and production company.
