* Benchmark pares earlier losses
* Financials end 0.7% lower
* Political tension in Gulf region sparks growth worries
(Updates to close)
By Nikhil Subba
Sept 16 (Reuters) - Australian shares advanced marginally on Monday, as huge gains in the energy sector, inspired by a leap in oil prices, were limited by downward trending financials, amid global growth jitters.
The S&P/ASX 200 index .AXJO inched 0.1% to 6676.20 at the close of trade. The benchmark closed 0.2% higher on Friday.
Markets were cautious as oil prices spiked by about 11% after two plants at the heart of Saudi Arabia's oil industry were attacked on Saturday, knocking out more than 5% of global oil supply. sent the energy index .AXEJ jumping 4.3% to a near four-month peak at close of trade, with oil and gas major Woodside Petroleum WPL.AX closing at a six-week high, while industry heavyweight Santos Ltd STO.AX closed at its highest level since late 2014.
The world's largest miner, BHP Group BHP.AX , which also has major exposure to oil, closed at its highest in nearly seven weeks on higher oil and iron ore prices, helping the broader mining index .AXMM gain about 2%. increase in political tensions in the Gulf region sent gold prices higher as traders scurried into safe haven buying, ultimately helping gold stocks .AXGD rise 3.3% at the close.
"It is not clear when production will be restored, and traders have commented that a prolonged period of restricted production could drive oil prices close to $100. Such a big spike in oil prices could be a shock for the world economy", analysts at Argonaut said of the attacks in Saudi Arabia in a note to clients.
"Higher oil prices in general put a drag on economic growth", said Marc Kennis, principal of Pitt Street Research.
Financial stocks .AXFJ , the heaviest components of the Australian benchmark, closed down 0.7%, with all of the "Big Four" banks - Commonwealth Bank of Australia CBA.AX , Westpac Banking Corp WBC.AX , National Australia Bank NAB.AX and Australia and New Zealand Banking Group ANZ.AX - trading lower.
Neighbour New Zealand's benchmark, the S&P/NZX 50 index .NZ50 , shed 0.3% or 31.7 points to finish the session at 10,831.75.
Electricity retailer Contact Energy CEN.NZ fell 2.7% at close while peer Genesis Energy GNE.NZ closed 2.3% lower.