The Woodside Petroleum Limited (ASX: WPL) share price is a top performer on Wednesday, adding 3% to a 1-month high of $21.55.
Evergrande rattles oil markets
Oil prices fell sharply on Monday, sparked by fears that China's Evergrande Group could default on its debt obligations and trigger a domino effect across the global economy.
Crude oil fell from US$71.68 to lows of US$69.63 before bouncing back to US$70.63 at the time of writing.
This dragged the Woodside share price lower on Tuesday, sliding 2.51% to $20.58.
The Evergrande crisis has made a dent in OPEC's positive outlook for oil markets.
In its monthly oil market report, OPEC said that:
… the recovery in various fuels is expected to be stronger than anticipated and further supported by a steady economic outlook in all regions. Oil demand in 2022 is now projected to reach 100.8 mb/d, exceeding prepandemic levels.
S&P Global quoted analysts from Price Futures Group who said that "oil prices are trying to bounce back after being under pressure because of the concerns about China's economy due to the possible default of China's biggest property developer".
"Those concerns had people running for haven protection in the dollar [and] put downward pressure on a lot of commodities."
That said, analysts believe that oil demand is supported by a "surge in prices of alternative energy sources such as natural gas, particularly in Europe, where UK gas futures surged to record highs".
"The region is set to face energy issues because of insufficient stockpiles, a situation that may worsen in the coming months as they enter the Northern Hemisphere winter."
Woodside share price bounces to a 1-month high
The Woodside share price is making a comeback this month, pushing to a 1-month high of $21.55.
Shares in the oil and gas giant have gone nowhere since November last year, despite oil prices rallying more than 60% over the same period.
