Volatile ASX jumps 1.4% on oil price surge

An overnight oil price surge has fuelled a strong open for the Australian sharemarket with some big energy stocks climbing close to 20 per cent.

The S&P/ASX200 benchmark index was up 72.2 points, or 1.4 per cent, at 5,226.5 at 1015 AEDT on Friday, riding high on hopes a truce is imminent in the oil price war between Saudi Arabia and Russia.

The All Ordinaries index was also up, rising 76.1 points, or 1.47 per cent, to 5,264.8 after the first 15 minutes of trading.

The energy sector rose by a collective 8.74 per cent, with Santos up 12.85 per cent, Origin climbing 5.68 per cent, Woodside Petroleum rising 9.35 per cent, Beach Energy up 10.42 per cent and Oil Search up 19.16 per cent. 

The heavyweight miners also drove the bourse higher with a solid early performance. 

Wall Street’s major indices all closed higher after coronavirus-driven rise in US unemployment claims was offset by an oil price surge. 

US President Donald Trump tweeted he had held a constructive call with Saudi Crown Prince Mohammed bin Salman, and expected OPEC+ with Russia to agree to cut oil output by as much as 10 million to 15 million barrels.

The opening rise for local stocks continues a week of wild swings.

The S&P/ASX200 benchmark index finished Thursday down 104.3 points, or 1.98 per cent, at 5,154.3, while the All Ordinaries index dropped 102 points, or 1.93 per cent, to 5,188.7.

The Australian dollar is buying 60.63 US cents, down from 61.84 US cents as the market closed on Thursday.

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