Santos Limited (STO.AU) saw its stock price soar 5.03% in intraday trading on Tuesday, outpacing the broader energy sector's recovery. The surge comes as the Australian market rebounds from Monday's global sell-off, with energy stocks leading the charge on the back of recovering oil prices.
The energy sector, which had lost approximately 17% over the past three sessions due to plummeting oil prices and recession fears sparked by U.S. tariffs, showed signs of a strong comeback. The S&P/ASX Energy Index (AXEJ) rose as much as 3%, posting its most significant intraday gain since November 22, 2024. Santos, one of Australia's leading oil and gas producers, outperformed even these robust sector gains.
The rally in Santos shares can be attributed to multiple factors, including the recovery in underlying crude oil prices, which rose more than 1% on the day. Additionally, the broader Australian market sentiment improved following reassuring comments from Treasurer Jim Chalmers, who stated that resource-rich Australia would be able to manage the direct impact of U.S. President Donald Trump's sweeping tariffs. This positive outlook, combined with gains in banks and miners, helped propel the S&P/ASX 200 index higher, creating a favorable environment for energy stocks like Santos to thrive.
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