The ASX started well but fell off to be down at the closing bell.
The S&P/ASX200 dropped 86.50 points or 1.22% to 7,024.30. Over the last five days, the index has lost 0.35% and 4.67% over the last 52 weeks.
Bottom-performing stocks in this index are Imugene Ltd (ASX:IMU, OTC:IUGNF) down 10.20% and Qantas Airways (ASX:QAN) Ltd down 8.54%.
Qantas has led the sell down on travel stocks. Flight Centre dove as much as 5.9% to $16.75 and Corporate Travel fell as much as 5.4
Qantas is paying for increasing oil prices in more ways than one, with Commsec predicting oil will be above $2 per litre across Australia.
While we have seen those prices in Melbourne, the average across the board has so far been under the magic two-dollar mark.
That is all set to change.
Oil to hit record prices
Commsec’s Craig James is predicting petrol prices to soar well above $2 a litre in the coming weeks.
The Russian invasion of Ukraine continues to push global oil prices to near all-time highs.
According to the Australian Institute of Petroleum, the national average unleaded petrol price rose by 3.3 cents per litre to a record 183.9c/l in the week to March 6. Last week, petrol prices hit record average highs in Melbourne (191.3c/l), Hobart (196.9c/l), Darwin (189.7c/l) and Canberra (188.6c/l).
CommSec chief economist Craig James points to a lag of a few weeks before higher crude prices are reflected at petrol pumps across Australia.
"The national average petrol price lifted 10 cents a litre after a $US10 barrel increase in crude oil over December and there was a similar 10 cent lift in February to $1.80 a litre after Brent crude rose from $US79 a barrel to $US89 a barrel in January," James says.
"Brent crude is now at $US128 a barrel so the Australian average pump price is on course to hit $2.10-$2.20 a litre over the next few weeks."
Investors fear direct sanctions on the Russian oil sector and for good reason … Russia is the world's second-largest oil exporter, exporting 4 million to 5 million barrels of oil daily.
While supplies are being crunched, OPEC+ is sitting idly by and sticking to its guns of a gradual increase to production.
So, no help there.
OPEC includes Russia.
Meanwhile, Woodside Petroleum Limited (ASX:WPL) is up 9% to $34.25 while Santos Ltd (ASX:STO) climbed 5.8% to $8.21, Beach Energy Ltd is trading 5.1% higher at $1.75 and Whitehaven Coal Ltd added 4.8% to $4.18.
On the small cap front
Notably energy and gold stocks performed well today.
- Brookside Energy Ltd finished 23.53% higher.
- Sprintex Ltd finished 20.00% higher.
- Montem Resources Ltd finished 13.95% higher.
- Duke Exploration Ltd finished 13.89% higher.
- Pantoro Ltd finished 12.50% higher.
- Emperor Energy Ltd finished 10.42% higher.
- Marvel Gold Ltd finished 6.52% higher.
- Black Earth Minerals NL finished 4.55% higher.
- Caspin Resources Ltd finished 4.40% higher.
- White Rock Minerals Ltd finished 3.50% higher.