Santos Limited (STO.AU), a major player in the Australian energy sector, saw its stock price surge by 8.61% in pre-market trading on Thursday. This significant upward movement comes on the heels of a rebound in global oil prices and expectations of a strong session for the broader Australian market.
The rally in Santos' shares can be largely attributed to the overnight jump in oil prices. According to market reports, the West Texas Intermediate (WTI) crude oil price climbed 5.1% to US$62.60 a barrel, while the Brent crude oil price rose 4.6% to US$65.71 a barrel. This uptick in oil prices was primarily driven by US President Trump's decision to lower tariffs on most countries, which boosted overall market sentiment and commodity prices.
Adding to the positive momentum, the Australian share market is poised for a strong opening, with the ASX 200 futures indicating a potential 6.6% rise at the start of trading. This broader market optimism, coupled with the specific boost to the energy sector from rising oil prices, has created a favorable environment for energy stocks like Santos. As one of Australia's leading oil and gas producers, Santos is well-positioned to benefit from higher oil prices, which typically translate to improved profit margins and stronger financial performance for energy companies.
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