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Key points
- The Beach Energy share price has gained 18% in 2022, compared to the ASX 200's 4% tumble
- The energy producer's gains might have been spurred by soaring oil prices
- Beach released its quarterly report last month
The new year has been good to the Beach Energy Ltd (ASX: BPT) share price.
As of Friday's close, the Beach Energy share price is $1.49 – 18.65% higher than its closing price of $1.26 on 31 December.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 4.36% over that timeframe.
That leaves the energy producer's share price outperforming the ASX 200 by 23% since the final close of 2021.
So, what's been boosting the company's shares lately? Let's take a look.
Why is the Beach Energy share price surging in 2022?
The Beach Energy share price has had a brilliant start to 2022, surging alongside the price of oil.
The oil price has been the topic of many conversations this year, and it caused another round of excitement on Friday.
Then, West Texas Intermediate crude oil was trading for more than US$90 per barrel, surpassing the milestone figure for the first time since 2014, according to CNBC.
Meanwhile, prior to the ASX's close on Friday, the price of Brent crude oil reached an intraday high of US$91.64.
Bolstering oil prices – appearing alongside troubles among OPEC+ member states – likely helped Beach Energy's stock to surge 4.2% last week.
However, it hasn't all been sunny for the company in 2022. Its stock slid 7.7% on the release of its quarterly update in late January.
Over the three months ended 31 December, Beach Energy's production slipped 7% compared to the prior quarter. Its sales volume also dropped 5% quarter-on-quarter. Though, rising oil prices leant themselves to lifting its sales revenue by 3%.
Interestingly, the energy producer isn't even the best performing ASX 200 energy share of 2022 so far.
That title goes to the Woodside Petroleum Limited (ASX: WPL) share price and its 19.7% gain.
Despite the Beach Energy share price's strong gains over the beginning of 2022, its longer term performance is still in the red.
Since this time last year, the company's stock has slipped 17%.
