The Australia 200 trades 9 points (0.11%) higher at 9039 at 2.15pm AEDT.
ASX 200 gains as energy sector rallies
The Australia 200 (ASX 200) recovered from an early dip, where it fell 43 points (0.48%) to a low of 8986.2, before buyers emerged and sent it into positive territory this afternoon.
The rebound was driven by a 3% gain in the ASX 200 energy sector after the United States (US) government announced new sanctions targeting Russia’s two largest oil producers, Rosneft and Lukoil, and nearly three dozen subsidiaries. The sanctions respond to Moscow’s ‘lack of serious commitment’ to ending the war in Ukraine. The news lifted crude oil prices above $60, roughly 7% above the $55.96 low earlier this week.
Further gains for crude may be harder to secure, given past sanction threats are often diluted or delayed and enforcement can be difficult.