The news: Energy was the second-best performing sector on the ASX on Friday as oil benchmarks approached a second straight weekly gain, buoyed by upbeat economic data in the US.
The numbers: Brent crude futures fell 19 US cents, or 0.23%, to US$80.85 per barrel by 2pm AEST, while US West Texas Intermediate (WTI) crude futures was down 27 US cents, or 0.35%, to US$77.89 a barrel. However, both Brent (1.5%) and WTI (1.6%) were on track to notch weekly gains, according to Reuters.
In the local market, energy added 1.82%, with oil majors Karoon Energy (2.6%), Woodside Energy (2.3%), Santos (1.5%), Beach Energy (1.2%) and Ampol (1.2%) all trading higher by afternoon trade.
The context: US economic data released this week has helped calm fears of a potential recession in the world’s top oil-consuming nation.
On Thursday, a government report showed US retail sales rose 1% last month, well above market forecasts for a 0.3% gain. New data also showed that fewer Americans filed new applications for unemployment benefits last week.
Restored confidence has been partly offset by a softer demand outlook in both the US and China. While US crude inventories posted a surprise jump earlier this week, the Organization of the Petroleum Exporting Countries (OPEC) cited weaker demand expectations for China on Monday.
