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Why this ASX 100 energy stock just surged to a record high

The Beach Energy Ltd (ASX: BPT) share price is one to watch today, after the ASX 100 energy stock surged to a new record high this morning.

Why is the Beach Energy share price at an all-time high?

Beach Energy shares are up 3.49% at the time of writing to $2.82 per share. That’s the highest mark ever for the ASX 100 energy stock and continues a strong 4-year period for the group.

Since the start of 2016, the Aussie oil and gas explorer’s shares have surged an impressive 522.22% higher. And that return is excluding its 0.72% dividend yield also received by shareholders.

High east coast Australian gas prices have been key to the ASX 100 energy company’s recent success. There has been volatility in global crude oil prices as tensions remain high between the West and Iran.

Oil prices tumbled lower on Monday, with WTI crude down 0.9% to US$59.04 per barrel while Brent crude fell 0.6% to US$64.98 per barrel. 

However, the Beach Energy share price put that aside to record strong gains throughout the week. The ASX 100 energy stock is now up 6.81% for the week and 11.90% since the start of January.

It’s been a similarly strong start to 2020 for many Beach’s Aussie competitors. Santos Ltd (ASX: STO) shares are up 9.17% to start the year while Woodside Petroleum Ltd (ASX: WPL) have gained 3.40%.

Should you buy Beach Energy shares today?

I’m not looking for oil and gas exposure in my portfolio, so I won’t be buying Beach Energy shares right now.

However, the group’s shares have been climbing higher for 4 years now and show no sign of slowing down.

The oil and gas sector could be in for a volatile year though, with louder calls for action on climate change putting ASX 100 energy companies in the spotlight.

Devastating bushfires across Australia are putting increasing political and shareholder pressure on energy companies to act. But if you’re willing to buy and hold through the ups and downs, I don’t see any reason why Beach Energy can’t continue to post strong earnings throughout 2020.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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