In a sea of red, the Woodside (ASX:WPL) share price is again hitting new highs. Here's why

Here's what's boosting the energy commodity producer's stock today.

Key points
  • The Woodside share price has hit yet another 52-week high on Tuesday, besting its 12-month record for the seventh time this month
  • Its strong performance comes amid a rough day for the broader market. Currently, the ASX 200 and the All Ords are both down more than 1%
  • The company's gains are likely being helped along by rising oil prices 

It's a great day for the Woodside Petroleum Limited (ASX: WPL) share price despite the broader market's struggles.

The oil and gas producer's stock has hit yet another 52-week high today, surging 3% to $29.04.

Though, it has since backed off. At the time of writing, the Woodside share price is $28.89, 2.48% higher than its previous close.

For context, the S&P/ ASX 200 Index (ASX: XJO) has slipped 1.1% right now. Meanwhile, the All Ordinaries Index (ASX: XAO) is down 1.2%.

Let's take a closer look at what might be boosting the Woodside share price today.

An oil miner with his thumbs up.

Image source: Getty Images

What's driving Woodside's stock today?

The Woodside share price is one of just 3 gainers on the S&P/ASX 200 Energy Index (ASX: XEJ) on Monday.

It's joined by that of fellow oil producer Beach Energy Ltd (ASX: BPT), which has gained 2.36%.

Yet another oil giant, Santos Ltd (ASX: STO) is also in the green. Its share price is up 2.33%.

With such a pattern having emerged, many readers will assume something is going on with oil prices today. And they would be correct.

The price of oil surged overnight and is continuing its gains through today's session.

Why are oil prices gaining?

Right now, the Brent crude oil price is U$97.27 per barrel ­– a 1.9% increase – while West Texas Intermediate has surged 2.9% to trade at US$94.00 a barrel, according to data from CNBC.

Reuters is reporting the black liquid's value is taking off due to rising tensions between Russia and Ukraine.

While most of Australia slept, the publication reported on claims from the Russian military stating it killed 5 saboteurs who crossed the border from Ukraine.

Ukraine reportedly responded by saying that the incident was fabricated, but some are concerned it could be used as a pretext for a Russian invasion.

As Russia is one of the world's leading oil producers, a potential conflict could hamper supply of the commodity.

Additionally, United States President Joe Biden and Russian President Vladimir Putin have agreed "in principle" to attend a summit proposed by French President Emmanuel Macron where they would discuss the tensions.

The summit will be conditional on Russia not invading Ukraine. However, the Guardian has reported that the Kremlin believes such talk is premature.

Finally, over the weekend, OPEC+ nations once again decided against easing demand for oil by increasing production, reports Reuters.

Woodside share price snapshot

The Woodside share price's intra-day high marks the seventh time the company's stock has surpassed its 52-week high in February.

Right now, it is 27% higher than it was at the start of 2022 and 21% higher than it was this time last year.

And it might not stop here.

As The Motley Fool Australia recently reported, Morgans has slapped the Woodside share price with a target of $30.35 and an 'add' rating.

The broker was impressed by the company's recently released full year results, detailing a 262% increase to underlying net profit after tax (NPAT).

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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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