Sydney, Jan 16, 2026, 17:33 AEDT — Market closed.
- Woodside Energy shares slipped 1.4% on Friday, underperforming the wider market rally.
- Woodside inked a five-year deal to supply LNG to Japan’s JERA, kicking off in winter 2027.
- Next week, traders will focus on oil prices, developments in the Middle East, and Woodside’s quarterly update set for late January.
Woodside Energy Group Ltd shares fell on Friday, weighed down by a drop in oil prices that eclipsed news of a new liquefied natural gas supply deal with Japan’s JERA. The stock finished down 1.42% at A$23.68. (Investing.com Australia)
Woodside’s shift stood out since it acts as a stand-in for crude and LNG prices in Sydney, yet energy lagged despite gains across the broader market. The ASX 200 eked out a roughly 0.5% gain, but energy wrapped up at the foot of the leaderboard. (ABC)
Oil set the tone heading into the weekend. Brent slipped 0.3% to $63.55 a barrel, while U.S. WTI dropped 0.3% to $59.04 as concerns over supply risks eased with the fading chance of a U.S. strike on Iran, Reuters reported. “Sentiment is driving markets,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, noting Brent appeared “range-bound” between $57 and $67 absent any boost from Chinese demand or supply disruptions. (Reuters)
Woodside highlighted a key long-term demand anchor. The company struck a sale-and-purchase agreement with JERA for three LNG cargoes annually—around 0.2 million tonnes—over five years starting in 2027, timed for Japan’s peak winter season and delivered ex-ship. George Gilboy, Woodside’s Vice President and Country Manager Japan, described it as “secure LNG supply during the critical winter months.” JERA executive officer Kosuke Tanaka noted the deal boosts “supply resilience and flexibility” to handle seasonal demand swings.
Delivered ex-ship, or DES, means the seller handles delivery to the destination port, where the buyer then takes over. For Woodside, it’s yet another long-term contract. But in the short term, the stock remains tied to crude and gas price swings.
Investors are juggling two timelines now. One hinges on commodities and shifts with the latest headlines. The other depends on contracts and projects, kicking off in 2027 or later, with returns coming down the line.
Australian energy company Santos fell 0.87% on Friday, closing at A$6.275, highlighting how vulnerable the sector remains to drops in oil prices. (Investing)
The downside risk is clear. If crude continues to drop on signals of ample supply, Woodside could start the next session under pressure, no matter what the contract news says. A sudden spike in Iran-related tensions might push oil higher, but traders have watched those jumps vanish fast before.
Heading into next week, all eyes are on crude and LNG prices, plus any changes in Middle East rhetoric that could shake up supply risk. In Sydney, investors often pull back from broad market gains if energy prices head south.
Woodside’s next major update arrives with its fourth-quarter 2025 results on Jan. 28, per the company’s investor calendar. The 2025 full-year report is set for Feb. 24. (Woodside)
