Highlights

  • WTI crude futures declined about 5% after US comments reduced near-term risk of military action affecting oil supply.
  • Reduced geopolitical risk eased concerns around potential supply disruptions from Iran and key Middle East shipping routes.
  • ASX-listed oil and energy companies, including Woodside, Santos and Ampol, began trading lower.

WTI crude oil futures fell sharply on Thursday, sliding almost 5% to about USD 59.10 a barrel, marking one of the steepest declines in recent months after remarks by US President Donald Trump suggested a reduced likelihood of imminent military action against Iran. The shift in geopolitical risk sentiment weighed on oil markets and influenced early trading in Australian energy stocks on 16 January 2026.

ASX Energy Stocks Open Higher

Following the downturn in crude oil futures, several ASX-listed energy stocks started trading in negative territory on 16 January 2026. At the time of writing, shares Woodside Energy Group Ltd (ASX:WDS) dropped to AUD 23.695, down 1.35% for the session. Santos Limited (ASX:STO) was priced at AUD 6.280, representing a fall of 0.79%. Meanwhile, Ampol Limited (ASX:ALD) was trading at AUD 29.550, lower by 0.14%, reflecting modest intraday declines across the sector.

Recent Developments Across These ASX Oil Producers

Woodside’s Third Quarter Operational Update

In October 2025, Woodside Energy reported third-quarter results for the period ended 30 September 2025, showing quarterly production of 50.8 million barrels of oil equivalent (MMboe), about a 1% increase from the previous quarter. The company also revised its full-year 2025 production guidance to between 192 and 197 MMboe, and reported reliability performance at its Pluto LNG facility. Average realised quarterly prices were near USD 60/boe, supported by diversified contracts and pricing structures.

The company highlighted ongoing progress on major projects, including its Scarborough Energy Project, with first LNG expected in the second half of 2026.

Santos Divestments Highlight Portfolio Moves

Santos announced the divestment of its 42.86% operated interest in the Mahalo Joint Venture in Queensland’s Bowen Basin for AUD 40 million upfront, with additional contingent payments possible. The company has also completed the sale of its interests in the Petrel and Tern fields in the Bonaparte Basin, generating cash proceeds and reducing future decommissioning exposure.

These transactions are part of Santos’ efforts to optimise its portfolio and capital allocation framework.

Ampol’s Quarterly Trading Trends

Ampol’s third-quarter trading update showed its Lytton Refiner Margin (LRM) at USD 10.64 per barrel, with total production reflecting the impact of planned maintenance activities. Group earnings for the quarter were ahead of the first-half quarterly average, and the company continues to execute its USD 50 million cost-reduction program, with details to be outlined in its full-year results.