Why ASX 200 energy shares are trouncing the index today

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

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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.

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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.

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