The Australian share market is lower at noon following further steep falls in oil prices.
The nervousness experienced in early January has returned to the local market after oil prices dropped more than five per cent overnight and triggered a significant sell off of energy stocks in the US, CMC Markets analyst Ric Spooner said.
“The number one driver is the return to a big drop in oil prices,” Mr Spooner said.
“Investors are concerned about capital investment in the oil and gas sector.
“People are concerned that if we see $US20 oil we could see bankruptcies and pressures on credit markets.”
Benchmark Brent crude is down 4.59 per cent, or $US1.57, while US WTI crude is down 5.41 per cent, or $US1.71, at $US29.91 a barrel after hopes faded for a deal between oil-producing nations to curb a massive supply glut.
Energy stocks were hit the hardest, with Santos down 15 cents, or 5.1 per cent, at $2.77, Woodside Petroleum down 80 cents, or three per cent, at $26.18 and Oil Search was 5.5 cents weaker, down 0.9 per cent, at $6.32.
The big miners were all lower, with BHP down 62 cents, or 4.1 per cent, at $14.30 and Rio Tinto was 56 cents weaker at $36.99 and Fortescue Metals was down 0.75 cents at $1.59.
Among the banks, Commonwealth was down $1.52 at $76.48, National Australia Bank had dropped $1.46 to $26.46, Westpac had shed 45 cents to $29.85 and ANZ was 68 cents weaker at $23.71.
KEY FACTS:
* At 1200 AEDT, the benchmark S&P/ASX200 index was down 81.9 points, or 1.64 per cent, at 4,910.6 points.
* The broader All Ordinaries index was down 79.1 points, or 1.59 per cent, at 4,936.6 points.
* The March share price index futures contract was down 90 points at 4848 points, with 24,068 contracts traded.
* National turnover was 883.5 million securities traded worth $1.8 billion.
