The Santos Ltd (ASX: STO) share price is wobbling today despite booming oil prices and a strong broader market.
While the company's stock doesn't seem to be responding to oil prices today, a boost in the black liquid's value will likely be good news for the oil and gas producer in the long term.
At the time of writing, the Santos share price has recovered from its afternoon dip to trade at $6.44, 0.63% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.06% while the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 1.27%.
Let's take a closer look at what experts are predicting for the oil price in 2022 and what that could mean for the Santos share price in the future.
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What's going on with oil prices this week?
The ASX has returned from its Christmas break wherein oil prices surged to a new 30-day high.
Right now, according to CNBC, a barrel of West Texas Intermediate oil is going for US$75.94, while Brent crude oil is trading at US$79.02 per barrel.
That's the highest they've been since the emergence of the Omicron COVID-19 variant sparked an oil price crash in late November.
And, according to reporting by Reuters, the variant is also to blame for oil's recent resurgence. Global markets are seemingly increasingly confident Omicron won't spark another wave of global lockdowns.
That's good news for oil, and what's good news for oil, is generally also good news for the Santos share price.
What experts are predicting for oil prices in 2022
Many brokers are bullish for oil prices in 2022. Though, one prestigious entity isn't so certain.
According to Fortune, both Goldman Sachs and Barclays are predicting oil prices will gain in 2022, particularly, if COVID-19 outbreaks are minimised.
Additionally, Reuters reports JP Morgan believes oil prices could go higher than US$125 per barrel in the new year, driven by production shortfalls.
However, the US Energy Information Administration disagrees. It expects Brent crude oil to average around US$70 a barrel in 2022.
What that means for the Santos share price
As oil is one of Santos' major products, its income tends to rise and fall in line with oil prices. Of course, its incomes generally drive its stock on the ASX.
While share price movements cannot be directly correlated to rising (or falling) oil prices, changes in the commodity's value could draw attention to Santos' stock in 2022.
That is likely particularly true as its merger with Oil Search has now been finalised, leaving it with even more oil assets.
Today, the ASX 200 energy sector is being led by Santos' peer, Beach Energy Ltd (ASX: BPT), closely followed by petroleum retailer, Ampol Ltd (ASX: ALD). The companies' share prices have gained 3.48% and 2.46% respectively.
