ASX 200 Energy Shares Outperform as Oil Prices Rally: Woodside and Santos Lead the Surge

Highlights:

• Woodside and Santos, major players in the oil and gas industry, emerge as key contributors, marking a 1% and 1.2% increase, respectively.
• Brent crude, a key indicator, stabilizes after reaching $US80 a barrel, standing at $US80.66 midday.
• The enthusiasm in the ASX resonates with the global market sentiment.

Image Source: Kapitales Research

ASX Climbs on Energy Sector Boost

In the final hours of trading, the Australian Securities Exchange (ASX) experiences a lift, with the S&P/ASX 200 up by 0.2% to 7063 points, driven primarily by a robust performance in the energy sector. This surge is attributed to a global rally in oil stocks, fueled by a substantial rebound in oil prices amid concerns over supply cuts.

Woodside and Santos Propel Local Sector

Woodside and Santos, major players in the oil and gas industry, emerge as key contributors, marking a 1% and 1.2% increase, respectively. The positive momentum follows a significant uptick in oil prices in New York, spurred by growing expectations of OPEC and its allies extending and deepening output cuts.

Oil Price Stability

Brent crude, a key indicator, stabilizes after reaching $US80 a barrel, standing at $US80.66 midday. Analysts, including JPMorgan strategists, predict the extension of existing output cuts during the upcoming November 26 OPEC meeting.

US Market's "Epic Risk Rally"

The enthusiasm in the ASX resonates with the global market sentiment. In the US, stocks close higher, contributing to what Bank of America's Michael Hartnett calls an "epic risk rally." The market witnesses a substantial inflow of $US23.5 billion into equities, marking the second-largest inflow this year.

Brambles Appoints Xavier Garijo

In other news, logistics giant Brambles appoints Xavier Garijo to head its Americas' pallet business, signaling strategic moves within the company.

As oil prices continue to influence market dynamics, the ASX remains resilient, driven by a robust performance in the energy sector and positive global market trends.

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