Santos (ASX:STO) share price rockets to a new 52-week high. Here’s why

The Santos share price has hit $8 for the first time since the onset of the pandemic.

| More on:
a small child and a pug dog sit in a go cart wearing old fashioned drivers headress and goggles as the drive along a country road with the boy holding his arm in the air and shouting as if celebrating their performance behind the wheel.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Santos share price peaked at $8.11 in intraday trade on Thursday – its highest point since February 2020 
  • The gain follows yet another surge in oil prices as markets continue to worry that Russia's invasion of Ukraine could cause supply issues 
  • Additionally, Santos CEO Kevin Gallagher has abandoned his seat on the board of Mineral Resources after consultations with investors 

The Santos Ltd (ASX: STO) share price has shot up today, reaching its highest point in more than 2 years.

 It comes as oil prices continue to surge due to concerns Russia’s invasion of Ukraine could cause a supply crunch.

At the time of writing, the Santos share price is $7.90, 2.46% higher than its previous close.

Though, that’s lower than its intraday high – and new 52-week record – of $8.11, representing a 5.18% gain.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.71%.

Today’s gain marks the first time the oil and gas producer’s stock has cracked the $8 mark since February 2020. Of course, in March 2020, oil prices tanked as the reality of the COVID-19 pandemic took hold of the globe.

More than 2 years later, the Santos share price has once again hit the milestone. Here’s what helped it break the ceiling on Thursday.

Santos share price surges alongside oil price

The Santos share price is well and truly in the green today, as are oil prices.

The black liquid’s value surged again overnight, hitting its highest price since 2013.

Brent crude oil futures have peaked at US$118.22 a barrel so far today, a gain of 4.6%, according to data from CNBC.

Meanwhile, West Texas Intermediate futures hit US$114.70 per barrel, representing a 3.7% increase.

It came as the OPEC decided to uphold its decision to steadily increase its supply of oil yesterday, despite concerns of a global shortage.

As The Motley Fool Australia reported earlier today, Russia exports around 10% of the globe’s oil. Russia is also responsible for around 20% of the world’s gas supply.

Thus, Russia’s invasion of Ukraine, and subsequent decisions by international energy giants BP plc (NYSE: BP), Shell PLC (NYSE: SHEL), and Exxon Mobil Corp (NYSE: XOM) to leave the nation, is likely to hamper the energy commodities’ availability.

Yesterday, Credit Suisse stated it believes an increase in demand from the conflict could see changes in pricing, asset selldowns, and project developments to the benefit Santos.

Interestingly, the Santos share price is far from today’s best performer on the S&P/ASX 200 Energy Index (ASX: XEJ).

That cake has been taken by the Whitehaven Coal Ltd (ASX: WHC) share price. It has gained 9% at the time of writing.

CEO abandons Mineral Resources Limited (ASX: MIN) board

In other news that has the potential to boost the Santos share price, the company’s CEO and managing director, Kevin Gallagher has backed away from his seat on the board of Mineral Resources.

Gallagher’s appointment was announced in January, much to the annoyance of investor group, Australasian Centre for Corporate Responsibility (ACCR).

At the time, ACCR director of climate and environment, Dan Gocher said, “it’s very unusual for the CEOs of ASX-listed companies to maintain non-executive director roles at other companies.”

Santos shareholders will be asking why the Santos board approved this appointment and what are Gallagher’s intentions.

The Santos board’s approval of this appointment suggests the board is out of touch and has failed to comprehend investors’ expectations of modern CEOs.

ACCR director of climate and environment, Dan Gocher

Today, Mineral Resources announced Gallagher abandoned his spot on its board after consulting with Santos shareholders.

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.

More on 52-Week Highs

Three children wearing athletic short and singlets stand side by side on a running track wearing medals around their necks and standing with their hands on their hips.
52-Week Highs

3 ASX 200 shares smashing new 52-week highs on Thursday

It's a good day to own these ASX 200 favourites.

Read more »

Three businesspeople leap high with the CBD in the background.
52-Week Highs

3 ASX 200 shares rocking new, multi-year highs on Tuesday

These three ASX 200 shares hit new multi-year highs today...

Read more »

Rocket going up above mountains, symbolising a record high.
52-Week Highs

These 3 ASX All Ordinaries shares hit new 52-week highs on Monday

These three All Ords shares just hit new 52-week highs.

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
52-Week Highs

3 ASX All Ordinaries shares hitting new 52-week highs on Wednesday

All three stocks notched up one-year plus highs in intraday trading today without releasing new price sensitive announcements.

Read more »

two dogs, a golden one and a black one, together carry a stick in their mouths as the run side by side with contented, happy looks on their faces.
52-Week Highs

2 ASX 300 shares rocking new 52-week highs on Monday

These 2 ASX 300 shares have seen new 52-week highs today.

Read more »

A man jumps over a river, bouncing from one rock to another.
52-Week Highs

Rocks and lasers: 2 ASX All Ords shares securing new multi-year highs on Wednesday

One tech stock and a coal share have launched to long-forgotten heights today.

Read more »

Supermarket trolley with groceries on top of a red pointing arrow.
52-Week Highs

Coles share price claims new 52-week high, could it still be a buy?

One broker believes the Coles share price could rise to $20.65.

Read more »

Group of friends toast with beers
52-Week Highs

The Endeavour share price just hit a new 52-week high!

The Endeavour share price just hit a new 52-week high. Here's the tea.

Read more »