Beach Energy was the worst hit, down 9.95%, trading at $1.63.
These moves mirror the decline in oil price, with WTI Crude down 0.51% today — trading at $52.37.
Oil price slides on trade war fears
With the price of WTI Crude falling in three of the past four days, there are now growing fears the US and China will not be able to strike a deal by the 1 March deadline.
The US has signalled its intention to levy a new batch of tariffs on Chinese goods on 2 March.
White House economic adviser, Larry Kudlow, said that there is a ‘pretty sizeable distance’ between the two parties.
When President Trump was asked if he would meet with Chinese President Xi Jinping before the deadline, he simply said ‘No.’
He continued, ‘Not yet. Maybe. Probably too soon. Probably too soon.’
As the news broke, there was a sharp sell-off in US stocks.
Stocks like Beach Energy, Santos and Woodside have been swept up in the downturn.
What’s the outlook for oil?
It depends on your timeframe.
Long-term, these stocks look cheap. Oil demand may well pick up in the years ahead as developing nations pick up the slack.
There are myriad short-term factors influencing the current price of oil.
The US is pumping out record amounts of the stuff and is set to become a net exporter.
Chaos in Venezuela may be offering some support coupled with as yet fully realised OPEC production cuts.
Macroeconomic risk in the form of a global recession this year is also a feature of the current market.
So if you are investing in Beach Energy Limited [ASX:BPT], Santos Limited [ASX:STO] and Woodside Petroleum Limited [ASX:WPL], you may want to consider your investment horizon.
For Money Morning
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