One of the biggest movers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) today has been the Santos Ltd (ASX: STO) share price.
In afternoon trade the oil and gas giant's shares are up 4% to $4.19.
Why are its shares higher?
Investors have been fighting to get hold of Santos shares today due to a sharp rise in oil prices overnight.
According to Bloomberg, Brent crude oil stormed to its highest level in over two years after Turkish officials threatened to block Kurdish oil shipments through its territory.
As well as this, oil prices were given a further boost when it was revealed that OPEC had followed through on its promises and delivered more than 100% of its agreed cuts last month.
This ultimately led to Brent crude oil finishing the day 3.8% higher at US$59.02 a barrel, its highest closing price since all the way back in July 2015.
Unsurprisingly it isn't just Santos climbing higher today. The shares of Woodside Petroleum Limited (ASX: WPL), Oil Search Limited (ASX: OSH), Beach Energy Ltd (ASX: BPT), and Origin Energy Ltd (ASX: ORG) are all notably higher.
Should you invest?
As I said earlier today, if you are bullish on oil prices then I think Santos would be a great option if you are looking to gain exposure to the resources sector.
Due to the hard work management has done at cutting costs, Santos is highly profitable and generates high levels of free cash flow at the current oil price. I feel this bodes well for its share price performance and its dividend over the next couple of years.
