The Beach Energy Ltd (ASX: BPT) share price has started strongly on Thursday. Shares in the Aussie oil and gas producer are up 3.27% in early afternoon trade despite no news from the company.
Why the Beach Energy share price is climbing today
It always pays to look at how the underlying commodity prices are moving when evaluating energy shares. In this instance, crude oil prices have jumped higher overnight.
Brent crude jumped 2.5% to US$75.46 per barrel while WTI crude climbed 3.1% to US$72.61 per barrel overnight.
That came as US government data showed higher than expected drawdowns on inventories coupled with expected demand increases as the global economy re-opens.
The Beach Energy share price has been one beneficiary of the news and is on the move on Thursday. It comes after a tough period for shareholders who have watched the company’s valuation slump 40.8% in 2021.
Declining oil production and downgrading of its Western Flank oil and gas assets have not helped. Shares in the energy group have remained under pressure for most of this calendar year.
The Beach Energy share price fell 9.9% lower on August 16 after the company’s full-year results release. Beach produced 25.6 million barrels of oil equivalent (mmboe) but is forecasting just 21 million to 23 mmboe in FY22.
Things went from bad to worse for the Aussie energy company on September 3 as S&P DJI announced that Beach would drop out of the S&P/ASX 100 Index (ASX: XTO) in the next rebalancing.
The Beach Energy share price has enjoyed a strong start to the day as oil prices jumped higher overnight. Shares in the Aussie energy company remain under pressure in 2021 amid reduced reserves and production levels.