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Media

Firmer crude price to support ASX oil plays, Santos and Woodside Petroleum

Oil futures finished higher as traders cheered a Senate deal to reopen the government and raise the nation's debt ceiling.

November crude added 1.1% to end at US$102.29 a barrel on the New York Mercantile Exchange.

Australian Stock Exchange listed major producers which will look to trade higher today include Woodside Petroleum (ASX: WPL) which closed at $38.52 yesterday, along with Santos (ASX: STO) set to firm from the $14.73 where it ended the day Wednesday.

Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell came to an agreement that will extend U.S. borrowing authority, which lapses tomorrow.

House Republicans today signaled that they will let it pass largely with Democratic votes. The first votes could be held as soon as today.

The framework agreed on by Reid, a Nevada Democrat, and McConnell, a Kentucky Republican, would fund the government through Jan. 15 and suspend the debt limit to Feb. 7.

The impasse is threatening the U.S. and world economies, International Monetary Fund Managing Director Christine Lagarde said this week. The U.S., the world’s largest user of crude, will account for 21% of global oil consumption this year.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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