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ASX closes 0.07% lower as US oil prices fall below $70

The ASX experienced a relatively calm trading session, with the exception of a sharp decline in energy stocks following a significant drop in oil prices, including a 4.1% decrease in US oil, bringing it below $70 per barrel and marking a 5-month low.

The energy sector was the sole sector among the ASX’s 11 categories to exhibit more than a 1% movement during the session, initially plummeting over 2%. Additionally, Brent crude also fell by over 3.5%, slipping below $75 per barrel, contributing to a cumulative oil price decline of over 10% in the past week.

At the closing bell, the S&P/ASX 200 was -0.07% lower at 7,173.30.

Futures

The Dow Jones futures are pointing to a fall of 21 points.

The S&P 500 futures are pointing to a fall of 2.5 points.

The Nasdaq futures are pointing to a fall of 4 points.

The SPI futures are down 22 points.

Best and worst performers

The best-performing sector was S&P/ASX 200 Utilities, up 0.84%. The worst-performing sector was S&P/ASX 200 Cons Disc, down -0.53%.

The best-performing large cap was Pilbara Minerals Limited (ASX:PLS), closing 4.99% higher at $3.58. It was followed by shares in AGL Energy Limited (ASX:AGL) and Allkem Limited (ASX:AKE).

The worst-performing large cap was Treasury Wine Estates Limited (ASX:TWE), closing -2.91% lower at $10.36. It was followed by shares in QBE Insurance Group Limited (ASX:QBE) and Washington H. Soul Pattinson and Company Limited (ASX:SOL).

Company news

Tamboran Resources (ASX:TBN) announced the successful completion of SS-1H stimulation program. In response, Tamboran Resources (ASX:TBN) Managing Director and CEO, Joel Riddle, commented, “the team engineered a repeatable stimulation formula, which is a significant milestone for Tamboran that is expected to lead to more efficient and lower cost programs in the future.” Shares closed flat at 13.5 cents. Our research business, Corporate Connect has provided a new research report on the Company. You can access the report via Corporate Connect and ShareCafe websites. 

Invictus Energy (ASX:IVZ) announced a gas discovery in the Mukuyu-2 well at its 80% owned and operated Cabora Bassa Project in Zimbabwe. Comments from Managing Director Scott Macmillan include, “The Company has delivered an exceptional result from the first two wells drilled in Mukuyu, which provides us with significant running room in our large portfolio of prospects and leads for further discoveries in our acreage in the Cabora Bassa basin.” Shares closed 28.13 per cent higher at 20.5 cents.

Blaze Minerals (ASX:BLZ) has identified multiple high-grade channel samples from all spodumene bearing pegmatites at the North Spirit Lithium Project in Canada. In response, Commenting on the Phase 2 results, Simon Coxhell said, “In the space of six months the project has grown from one historic anomalous rock chip sample to a number of prospective outcrops confirmed by these latest channel sample results.” Shares closed 12.5 per cent higher at .9 cent.

Elixir Energy (ASX:EXR) announced that Daydream-2 appraisal well in its 100% owned Grandis Gas Project located in the Bowen Basin, Queensland, reaches Total Depth of 4,300 metres. Elixir’s Managing Director, Mr Neil Young, said, “although these are still early days, the unexpected intersection of a permeable gas zone this deep in the section may unlock another new Australian deep gas play and will be of interest to many parties. Furthermore, on almost every other front the well has exceeded expectations – in terms of geology, engineering, economics and project management.” Shares closed 7.78 per cent higher at 10 cents.

Asian markets

Japan’s Nikkei has lost -1.87%.

Hong Kong’s Hang Seng has lost -1.06%.

China’s Shanghai Composite has lost -0.04%.

Commodities and the dollar

Gold is trading at US$2,043.00 an ounce.

Iron ore is 1.7 per cent higher at US$133.65 a tonne.

Iron ore futures are pointing to a 3.38 per cent rise.

Light crude is trading $0.38 higher at US$69.76 a barrel.

One Australian dollar is buying 0.6533 US dollars.

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