The Elixir Energy Ltd (ASX: EXR) share price has jumped into the green today, finishing up 14.29% to 28 cents.
Let's have a look at what's been fuelling Elixir Energy's share price today.
What's been happening Elixir Energy?
There has been no market-sensitive information released by the company in September.
However, Elixir shares have been on the up since the company announced it had extended the area of discovery in the Kingston sub-basin back on 25 August.
After a short selloff in the couple of days after this announcement, Elixir shares have been regaining steam ever since.
One other factor that could be aiding this recovery is the recent price rally in the oil markets.
Crude oil has jumped from US$62 a barrel on August 20 to US$72.66 a barrel today. Additionally, the price of Brent crude has edged higher on the day to US$$75.45 a barrel.
Elixir is an ASX resource share that produces a commodity, meaning it is considered a price taker. As such, its share price will fluctuate with volatility in the broader commodities markets.
With this relationship in mind, and given the recent strengths in oil pricing described above, it starts to make sense why the Elixir share price has soared by 14% today.
In the absence of any other market-sensitive information, it appears investors could be buying Elixir shares on the back of strengths in the underlying oil markets.
Elixir Energy share price snapshot
The Elixir Energy share price has climbed 124% this year to date, and 86% over the past 12 months.
These returns have outpaced the S&P/ASX 200 index (ASX: XJO)'s climb of around 25% over the past year.
Despite the recent rally, Elixir shares are still off their 52-week high of 51 cents. However, they are aloft the 52-week low of 9.8 cents.
