Panic selling hits Australian energy stocks; Woodside, Santos slump

Australian energy stocks were hit hard by fears of further oil price declines after U.S. president Donald Trump's tariffs roiled global markets.

The energy subindex fell 7.6% at 0434 GMT and plunged to its lowest level since November 10, 2020. It was on course for its worst day in more than five years.

The benchmark ASX200 index fell 2.3%, to a nearly eight-month low level of 7,681.1.

Eight OPEC+ nations agreed to move forward with their plan to increase oil production following Trump's announcement. This could put pressure on prices.

Woodside Energy, a major player in the sector, lost nearly 9% and fell to its lowest level since November 29, 2021. Stocks were set to have their worst day in more than five years.

Santos, a smaller peer that was once considered a target for takeover, fell 8.6% intraday, its biggest percentage drop in more than five years. Karoon Energy, a gas and oil explorer, and Beach Energy fell 11.4% and 10.0% respectively.

Kyle Rodda said that the stocks would continue to fall as long as markets continued to price in a U.S. economic recession.

Early Asian trade continued the decline of global oil prices after Thursday's steepest drop in three years, a more than 6% plunge.

The decline was caused by fears that new U.S. trade tariffs would escalate the global war of commerce and could dampen demand for oil.

Investors are fleeing to safer investments such as consumer staples after Australia imposed a 10% tariff, equivalent to the U.S. base tariff on all imported goods. This sparked a panicked sell-off, sending the stock prices plummeting. (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sumana Nandy)

(source: Reuters)