Australia Stocks Rise, Led by BHP, Woodside on Record Oil Price
By Emma O'Brien
Australia's S&P/ASX 200 index advanced, snapping three days of losses, led by BHP Billiton Ltd. and Woodside Petroleum Ltd. as crude traded near a record on concern Turkey may attack Kurdish militants in Iraq, disrupting oil shipments.
``The record oil price is buoying Woodside and the other oil explorers,'' said Atul Lele, who helps manage the equivalent of $380 million at White Funds Management Ltd. in Sydney. ``The geopolitical premium is being priced in and its led to this short- term spike in the price.''
Sino Gold Mining Ltd. jumped on the rising gold price and increased production out of its Chinese mine.
The index gained 30.50, or 0.5 percent, to 6,722.50 as at 11:09 a.m. in Sydney. Of the benchmark's 201 stocks, 102 rose while 78 fell.
BHP, Australia's largest oil producer, added 60 cents, or 1.3 percent, to A$47.02. Woodside Petroleum Ltd., the nation's second- biggest, climbed A$1.04, or 1.9 percent, to A$56.53. Santos Ltd., the third-biggest, jumped 33 cents, or 2.2 percent, to A$15.43.
Crude oil rose above $88 a barrel for the first time in New York on concern Turkey may attack Kurdish militants in Iraq and disrupt oil shipments. Oil for November delivery traded recently at $87.40 a barrel in after hours trading on the on the New York Mercantile Exchange.
Sino Gold, which is developing two mines in Australia, climbed 28 cents, or 3.8 percent, to A$7.63. The company said yesterday gold output from its Jinfeng mine jumped 33 percent in the three months ended Sept. 30 from the previous quarter. It is also looking for acquisitions in Australia, after purchasing Golden Australia Resources Corp. this year, according to a statement to the exchange.