The Santos Ltd (ASX: STO) share price is in the green today, as are global oil prices.
The West Texas Intermediate oil price has climbed to more than US$70 per barrel, having gained 0.79% today. Additionally, the price of Brent Crude oil is now sitting at US$73.46 per barrel.
The Santos share price is also taking advantage of a good day's trade. At the time of writing, Santos shares are swapping hands for $6.195, 2.23% more than they were at Friday's close.
Let's take a closer look at what's driving the price of oil and the oil and gas producer's share price today.
What's driving the Santos share price higher?
The Santos share price is having a good day, likely spurred by increasing oil prices.
According to reporting by Bloomberg, the price of oil is gaining as the destruction caused by Hurricane Ida reaches the global oil market.
The storm hit the Gulf of Mexico more than a fortnight ago and practically halted oil production in the region. The Gulf of Mexico normally sends around 1.1 million barrels of oil to the global market each day.
As a result of the disaster, the United States' crude oil stockpile is at its lowest point in 2 years.
While Hurricane Ida has positively impacted oil prices, it brought mass devastation to the Gulf of Mexico.
The Guardian reported the storm was responsible for a massive oil spill while the US Coast Guard responded to up to 350 reports of oil leaking into the ocean.
In other news, the Santos share price's boost might also be a lingering effect of last week's news. On Friday, Santos and Oil Search Ltd (ASX: OSH) confirmed the two companies are planning to merge to create a $21 billion oil and gas company.
The merger is waiting for approval from shareholders, regulators, and Papua New Guinea authorities. The two entities hope to become one in December.
