Australian Stocks Ease, Oil Refineries Face Global Competition

Marcus Jacob
07 Jan, 2014
New York City

Australian trade deficit in November narrowed on rising exports. Aussie dollar declined and stock trading was the weakest in the year so far. Sundance Energy plans to purchase additional land in Oklahoma. Nucoal Resources nearly doubled on no news.

[R]4:30 PM Sydney – Australian trade deficit in November narrowed on rising exports. Aussie dollar declined and stock trading was the weakest in the year so far. Sundance Energy plans to purchase additional land in Oklahoma. Nucoal Resources nearly doubled on no news.[/R]

Australian stocks closed lower in weak trading and resource and energy stocks were in focus.

Australian oil refinery industry may face a shake up after Shell and BP plan to exit the country and either sell or shutdown ageing refinery facilities as competition mounts from new and better oil refineries in India and South Korea.

The Australian Bureau of Statistics reported trade deficit in November narrowed to $118 million from downwardly revised October deficit of $358 million.

Australian dollar slipped to 89.21 U.S. cents and in stock market trading turnover rose to 612 million shares worth $3.3 billion.

The ASX 200 index slid 7.90 to close at 5,317 and the broader All Ordinaries fell 8.90 to 5,318.80.

Stocks in Review

Rio Tinto dropped $1.75 to $66. BHP fell 35 cents to $37.21.

Woodside Petroleum Limited slid 4 cents to $37.66 after the oil and gas explorer’s partner in the Leviathan gas project in Israel signed a deal to sell $1.2 billion of gas to Palestine Power Generation Company for 20 years.

Woodside is still awaiting a regulatory approval for its stake purchase in the Israeli partner.

Westpac fell 4 cents to $32.08.

Macquarie Group Ltd slipped 1.4% to $54.35 after the financial services provider and consortium in talks to buy 900 Australian gas stations and refinery from Royal Dutch Shell.

Sundance Energy Australia Ltd slid 0.5% to 97 cents and oil and gas explorer plans to purchase additional 10,000 acres in Oklahoma for US$5.9 million.