Shares in Australian energy companies Santos (ASX:STO) and Woodside Energy (ASX:WDS) both fell 3% on Friday morning after crude oil prices declined amid increased tensions between the US and China.
Brent crude oil futures were down 0.5% to $62.99 per barrel on the ICE Futures Exchange, paring losses of more than 3% on Thursday.
Crude oil prices initially surged following the US' suspension of its steep tariffs. But China's exemption from the relief eventually spooked the market on fears of further retaliation.
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