ASX Slumps as Oil Prices Surge Past $99
The Australian share market, ASX 200, hit a six-week low on September 9 as oil prices climbed. Brent crude futures rose 1.46% to US$99.34 a barrel after reports of explosions near Iran's Kharg Island and attacks on Saudi energy facilities.
Earlier in the day, the ASX 200 had opened slightly higher before turning negative. About 120 of its 200 stocks were trading lower.
Oil and gas companies Woodside Energy and Santos rose after Brent crude jumped, while BHP, Rio Tinto, and Capstone Copper gained as copper futures reached a record US$14,601 per tonne on the London Metal Exchange.
Cameron Gleeson, Betashares senior investment strategist, warned that investors should not be complacent about oil reaching US$100 a barrel. He said disruption to tanker traffic or further escalation around the Strait of Hormuz could quickly affect energy prices, while higher refined-product prices could add pressure to inflation and bond yields.