The S&P/ASX 200 Index (ASX: XJO) is starting this Tuesday off on the front foot. At the time of writing, the ASX 200 is up a healthy 0.4% to 7,519 points. The sector contributing the most to today's gains is currently ASX energy shares.
As it currently stands, the S&P/ASX 200 Energy Index (ASX: XEJ) is the top-performing sector of the entire ASX 200. It's currently up 2.48% to 7,504 points. Of the nine ASX enegy shares that make up this index, only one is currently in the red today. That would be Whitehaven Coal Ltd (ASX: WHC).
Other than Whitehaven, we are seeing some very strong moves here. At the top of the pile is Woodside Petroleum Limited (ASX: WPL). Woodside shares are currently up a very healthy 3.15% to $20.30 a share. Close on Woodside's heels are Beach Energy Ltd (ASX: BPT) and Ampol Ltd (ASX: ALD) and Santos Ltd (ASX: STO). These ASX 200 energy shares are up 2.84%, 2.82% and 2.52% respectively. Oil Search Ltd (ASX: OSH), which reported its FY21 earnings this morning, is up 1.62% to $3.76 a share.
So why are ASX 200 energy shares outperforming today?
Well, we don't have to look too far.
Image source: Getty Images
ASX 200 energy shares rise on the back of higher oil prices
A sector-wise rise (or fall) in the commodity space tends to be caused by one thing – a change in commodity prices. And we have seen this price of crude oil rally strongly over the past 24 hours.
As my Fool colleague James gazetted this morning, West Texas Intermediate (WTI) crude oil prices rose by almost 6% overnight (our time) to back over US$65 a barrel. Brent crude was also up to back over US$69 a barrel. Some good news from China in regards to its COVID oubreak, as well as a drop in the strength of the US dollar, were cited as factors here.
It's this strength in the oil markets that are likely buoying ASX energy shares today. And this seems to have flowed through (no pun intended) to the entire ASX 200 Index this Tuesday.
