Key points
- The Santos share price is up 1.29% on Monday, while Woodside's has gained 1.37%
- The oil producers' stock might be impacted by boosted oil prices
- The companies' home sector is outperforming most ASX 200 indexes on Monday
Today is shaping up to be a good day for the Santos Ltd (ASX: STO) share price and that of Woodside Petroleum Limited (ASX: WPL).
The oil producers' shares are currently outperforming the broader market, gaining 1.29% and 1.37% respectively.
At the time of writing, stock in Santos is trading at $7.085 while Woodside shares are swapping hands for $25.16.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.06% while the All Ordinaries Index (ASX: XAO) has gained 0.02%.
Could the price of oil have anything to do with today's performance from the share prices of Santos and Woodside? Let's take a look.
What's boosting shares in Santos and Woodside today?
The price of oil shot up overnight, with Brent Crude gaining 0.2% to reach US$86.28 per barrel and West Texas Intermediate trading at US$84.27, a 0.5% gain, according to data from CNBC.
That's on top of Friday's gains of 1.9% and 2.1% respectively.
And, according to Reuters, the increases might be ongoing.
Earlier today (Australian time), the publication stated supply outages and disproved assumptions the COVID-19 Omicron variant would see demand for oil fall have bolstered the black liquid's value.
As oil producers' profits are tied to the commodity's price, the increase is likely to boost their share prices.
Growing oil prices have also likely helped buoy the S&P/ASX 200 Energy Index (ASX: XEJ) to become one of the top-performing sectors on Monday, boasting a 1.3% gain.
The increase has helped the energy sector reach its highest point since October.
While the sector's oil companies are helping it push higher, its coal producers are leading the charge.
The Whitehaven Coal Ltd (ASX: WHC) share price is its best performer, surging 4.64% higher on Monday.
Those of Worley Ltd (ASX: WOR) and Washington H Soul Pattinson and Co Ltd (ASX: SOL) aren't far behind, gaining 2.8% and 1.64% respectively.
While Santos and Woodside's shares aren't their sector's top performers, they've both made a strong start to 2022.
Year to date, the Santos share price has gained 12%. Meanwhile, the Woodside share price has increased by 14%.
