Image source: Shutterstock

Highlights

  • Energy index (.AXEJ) jumps 1.1% to its highest level since April 4.

  • Oil prices surge 3% amid renewed optimism over a potential U.S.–China trade deal.

  • Karoon Energy hits a one-month high, rising 3.3%.

Australian energy shares surged on Thursday, with the energy sub-index (.AXEJ) climbing as much as 1.1% to 7,457.1 points — its highest level since April 4. The rally was fuelled by a sharp rebound in global oil prices, which rose 3% as investor sentiment improved on hopes of a breakthrough in trade negotiations between the United States and China.

Karoon Energy (ASX:KAR) led the gains among oil producers, jumping 3.3% to Au$1.488, marking its highest level in over a month. Major energy players also contributed to the uptick, with Woodside Energy (ASX:WDS) advancing 1.5% and Santos (ASX:STO) gaining 0.9%.

The broader S&P/ASX 200 Index (.AXJO) posted a modest 0.2% rise, trailing behind the strong performance of the energy sector.

Despite today’s gains, the energy sub-index remains under pressure year-to-date, still down 13.8% as global market volatility and commodity price fluctuations weigh on the sector.