The share market is weaker as another fall in oil prices hits energy stocks.
The Brent price of crude oil has touched a fresh four-and-a-half year low after OPEC nations shied away from cutting production to deal with a global oversupply.
“The price is going to remain fairly depressed if not even lower,” IG market strategist Evan Lucas said.
“It’s why … the oil space as a whole is getting absolutely thumped.”
Oil and gas producer Woodside Petroleum dropped $1.87, or 5.2 per cent, to $33.88, Santos dumped 65 cents, or 6.4 per cent, to $9.45 while Oil Search was 58 cents, or 7.3 per cent, weaker at $7.39 at 1206 AEDT.
In the resources sector, diversified mining giant BHP Billiton was down $1.12 at $29.80, Rio Tinto had lost $1.33 to $57.77 and Fortescue Metals had shed 17 cents to $2.77.
“The one now really to watch is BHP – their two major players which is iron ore and petroleum, both of those commodities are in bear markets,” Mr Lucas said.
Among the major banks, Commonwealth Bank was off 20 cents at $80.52, National Australia Bank had backtracked 19.5 cents to $32.405, Westpac had lost one cent to $32.54 and ANZ had retreated two cents to $31.90.
Grocery wholesaler Metcash was 42 cents, or 16 per cent, lower at $2.19 after it said its turnaround plans are on track despite another profit slide during the first half.
Ten Network added half a cent, or two per cent, to 25 cents after Paul Mallam resigned from the board.
On Wall Street on Friday, market indices were mixed as energy-related stocks were hammered, after the Organisation of Petroleum Exporting Countries (OPEC) decided not to cut production from 30 million barrels a day in response to crude prices, which have shed more than a third of their value since June.
KEY FACTS
* At 1200 AEDT on Monday, the benchmark S&P/ASX200 index was down 52.5 points, or 0.99 per cent, at 5,260.5 points.
* The broader All Ordinaries index was down 54.7 points, or one per cent, at 5,243.4 points.
* The December share price index futures contract was 74 points lower at 5,264 points, with 16,415 contracts traded.
* National turnover was 566.2 million securities worth $1.3 billion.
