The Oil Search Ltd (ASX: OSH) share price has enjoyed a strong start to the week. Shares in the Aussie oil exploration and production company have jumped 2.11% at the time of writing.
It means shares in the energy group are now up 10.03% in the past 5 days. So, what’s driving Oil Search’s valuation higher right now?
Why the Oil Search share price is up 10% in a week
There have been no price-sensitive announcements from Oil Search in recent days. However, underlying commodity strength could be playing a significant part in recent moves.
The Oil Search share price surge has coincided with a surge in something else: crude oil. Brent and West Texas Intermediate (WTI) crude oil have both been charging higher in recent weeks, enough to hit 3-year highs. Brent crude oil climbed 62 cents to US$78.81 per barrel on Monday while WTI topped US$75 per barrel.
Tight supply conditions and strengthening demand for the key commodity have been supporting recent oil price gains. That’s as energy providers have dipped into their inventories, with supply unable to ramp up and meet short-term demand spikes.
Those crude oil price gains have been reflected in the Oil Search share price this week. Shares in the Aussie company have rocketed 10.03% higher in the past 5 days to $4.12 per share.
That means Oil Search’s market capitalisation has climbed to $8.5 billion, having gained 10.92% year to date. It’s been a similar story for many of the ASX 200 energy shares in recent days.
The Oil Search share price has been one of many ASX energy shares climbing higher in recent days as crude oil prices continue to rise.