It looks set to be a very positive day of trade for Australia’s leading energy producers on Wednesday after oil prices surged higher overnight.
According to Bloomberg, the WTI crude oil price has climbed 3.7% higher to US$57.01 a barrel and the Brent crude oil price has stormed 4.5% higher to US$61.21 a barrel.
Why did oil prices surge higher?
Traders were buying oil overnight after the United States Trade Representative (USTR) office revealed that new tariffs on certain Chinese consumer items would be delayed until December.
The USTR also announced that some products were being removed from the new China tariff list altogether. The office stated that “products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.”
According to CNBC, the USTR advised that the delay affects electronics including mobile phones, laptops, video game consoles, some clothing products and shoes, and toys.
This has eased concerns over an escalating trade war between the two nations. And as there had been concerns that the trade war would impact global economic growth and ultimately lessen demand for oil, the outlook for energy consumption has improved greatly overnight.
This is likely to mean that the shares of Beach Energy Ltd (ASX: BPT), Oil Search Limited (ASX: OSH), Santos Ltd (ASX: STO), and Woodside Petroleum Limited (ASX: WPL) will be on the rise today.
What else could rise?
It won’t just be the energy producers pushing higher today. I suspect that Australian tech shares such as Appen Ltd (ASX: APX), Nearmap Ltd (ASX: NEA), and WiseTech Global Ltd (ASX: WTC) could be amongst the best performers on the market after their U.S. counterparts raced higher.
Late in the U.S. session the technology-focused Nasdaq index is up a sizeable 1.9%. And as the local tech sector tends to follow its lead, it bodes well for the day ahead.
And here are three more shares which could be on the rise today. I think they are strong buys right now.
You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.
So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!
Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...
While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...
Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.
You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- Top analysts name their top 3 ASX blue chip shares for 2019
- Richest man alive issues dire warning
- 3 quality dividend shares to boost your income
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019