Beach Energy Ltd (BPT.AU) shares plunged 10.61% in intraday trading, as panic selling hit Australian energy stocks following concerns over declining oil prices and escalating global trade tensions. The sell-off was triggered by U.S. President Donald Trump's announcement of reciprocal tariffs, which rattled global markets and raised fears of a potential U.S. recession.
The Australian energy sub-index (.AXEJ) suffered a significant blow, losing 7.6% and reaching its lowest level since November 10, 2020. Beach Energy's decline was part of a broader trend affecting the entire sector, with major players like Woodside Energy and Santos also experiencing substantial losses. The sell-off was further exacerbated by news that eight OPEC+ countries agreed to advance their plan for oil output hikes, potentially putting additional pressure on oil prices.
Global oil prices continued their decline in early Asian trade, following Thursday's more than 6% slump, the steepest in three years. The downturn was fueled by concerns that fresh U.S. tariffs could further escalate the global trade war and potentially dampen oil demand. As investors scrambled for safer bets, Australian energy stocks, including Beach Energy, bore the brunt of the frantic sell-off amid growing uncertainties in the global energy market.
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