Why ASX 200 energy shares are trouncing the index today

The supply and demand situation in global crude markets is tightening up.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) energy shares are broadly putting in a great performance today.

Shares in Woodside Petroleum Limited (ASX: WPL), for example, are up 2.64% to $22.37 per share.

And the Santos Ltd (ASX: STO) share price, which was up more than 4% in early morning trade, is up 1.39% at the time of writing.

This, as the ASX 200 itself has given back its early gains and is currently down 0.25% for the day.

Teens having fun on the basketball court.

Image source: Getty Images

What's going on with the oil price?

ASX 200 oil and gas shares look to be benefitting from another overnight boost in global crude oil prices.

Brent crude gained 1.4% over the past 24 hours to US$77.25 (AU$105.80) per barrel on the ICE Futures Europe exchange.

That's its highest level in almost 3 years, when Brent briefly traded above that price from August to October 2018.

Today's Brent crude price is now 260% higher than the post-pandemic-crash lows, which saw it bottom out at US$21.44 on 24 April 2020.

And a growing number of top analysts and oil traders see crude's steady march higher, having some way to go yet. This would be welcome news to investors in ASX 200 oil and gas shares.

As Bloomberg reports:

Vitol Group sees oil rising above $80 a barrel, partly as surging gas prices boost demand for crude in power generation. Goldman Sachs Group Inc. said crude may top $90 if the coming winter in the northern hemisphere proves colder than normal.

How have these 2 ASX 200 energy shares been tracking?

The Santos share price has gained 30% over the past 12 months, and shares are up 10% in the last month.

The Woodside Petroleum share price is up 24% since this time last year, and shares have gained 13% over the past month. When running your measuring stick along Woodside's share price, it's worth keeping in mind the pending merger agreement with BHP Group Ltd (ASX: BHP).

The ASX 200, by comparison, is up 25% in 12 months and down 2% over the past month.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Hand holding out coal in front of a coal mine.
Energy Shares

Buying Whitehaven Coal shares? Here's how the miner just locked in $853 million in funding

Whitehaven Coal revealed a major funding boost intended to reduce costs.

Read more »

Oil worker giving a thumbs up in an oil field.
Energy Shares

Why is this ASX energy stock plunging today?

A big capital raise will have this company cashed up.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Energy Shares

Up 635% in one year, guess which ASX energy share is rocketing again on Friday

Investors are bidding up this surging ASX energy share again today. But why?

Read more »

Young woman dressed in suit sitting at cafe staring at laptop screen with hands to her forehead looking tense.
Energy Shares

ASX 200 energy shares whipsaw amid fragile ceasefire

ASX 200 energy shares are leading the market today after a substantial sell-off yesterday.

Read more »

Falling prices of oil demonstrated by a red arrow and barrels of oil.
Energy Shares

ASX shares to watch as oil price crashes

The turnaround in oil prices is a huge headwind for the ASX shares.

Read more »

Red arrow going downwards in front of oil pumpjacks.
Energy Shares

Why are Santos and Woodside shares crashing today?

Let's see what is weighing on these shares on Wednesday.

Read more »

A Santos oil and gas company employee stands in a field looking at an iPad with an oil rig in the background and grey skies above, representing carbon in the atmosphere.
Energy Shares

Santos shares sink 5% despite another strong Alaska result

Santos shares fall despite strong Alaska oil appraisal and project progress.

Read more »

An oil worker holds his hands in the air in celebration in silhouette against a seitting sun with oil drilling equipment in the background.
Energy Shares

4 reasons why Woodside shares are a screaming buy right now

The oil and gas giant's shares have rallied off the back of tighter global oil supply.

Read more »