Australian Stocks Are On A Tear

The Australian stock market is on a tear this morning, up 1.18% to 5,484.50.

Leading the charge are energy stocks. Senex was up 8.46% to $0.282, LNG Ltd was up 7.85% to $2.61 and Santos was up 4.99% to $7.79.

The oil price is rallying after news Saudi King Abdullah had died. During futures trade Nymex crude staged a rally of 92 cents or 1.99% per barrel.

Traders are worried the country’s new king, Abdullah’s half-brother Crown Prince Salman bin Abdulaziz, will deviate from recent policy by cutting oil production which would see the commodity price rise again.

Here’s the chart.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.