This ASX energy share is combatting its sector's sell-off to hit 9-year highs

It's proving another good day for Melbana Energy's stock…

Five people in an office high five each other.

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 Melbana Energy share price is soaring on Tuesday, hitting an intraday high of 13 cents – its highest point since 2012
  • That's despite the energy sector dropping nearly 3% amid falling oil and gas prices
  • Its latest gains mean the gas and oil explorer's stock has risen 456% this year so far

The share price of ASX energy stock Melbana Energy Ltd (ASX: MAY) is surging today, hitting its highest point since 2012.

Its gains come despite no news having been released by the oil and gas producer. Additionally, the S&P/ASX 200 Energy Index (ASX: XEJ) is plunging 2.91%.

At the time of writing, the Melbana Energy share price is 13 cents, 8.7% higher than its previous close.

Let's take a look at what might be boosting the ASX energy producer's shares today.

Why is the Melbana Energy share price soaring today?

The Melbana Energy share price is launching upwards today despite the energy sector retreating after its 5.25% gain yesterday.

The sector's struggles come as the energy prices wobble.

Right now, West Texas Intermediate futures have recovered from a dip to trade at US$119.85 a barrel ­– up 0.3%, according to CNBC. Brent crude futures are 0.8% higher, trading at US$124.20 a barrel.

Meanwhile, natural gas futures have dropped 1.9% to US$4.74 per metric million British thermal unit.

That's weighing on oil giants Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Beach Energy Ltd (ASX: BPT). Their share prices are slumping 3.37%, 3.28%, and 2.54% respectively today.

However, Melbana hasn't been tracking its sector lately.

The ASX energy share has gained a whopping 456% year to date. That was largely driven by a 78% surge experienced by the stock when the company announced the finding of a "significant oil interval" last month.

It gained another 25% yesterday as oil prices soared to their highest point in 13 years.

Meanwhile, the energy sector is up a respectable 20% year to date, including today's dip.

Perhaps that's why the small-cap ASX energy share is defying the broader market today.

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 Energy Shares

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Energy Shares

Why is the Beach Energy share price racing higher on Thursday?

This energy producer delivered some big news this afternoon.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
Energy Shares

Own Ampol shares? Get ready for your monster dividend payment

Ampol investors are about to enjoy their largest-ever dividend.

Read more »

A man sees some good news on his phone and gives a little cheer.
Energy Shares

Buy Woodside shares for a 20% gain and 4.5% dividend yield

Morgans thinks investors could get big returns from this energy giant.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

A 36% yield from this ASX dividend share? Here's how these forward-looking investors made it happen

Some savvy passive income investors are earning a 36% yield from this ASX dividend star.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Uranium is set to boom, and this is the 'premium' ASX stock to buy

Shaw and Partners' Jed Richards reckons these are the shares to buy for the nuclear energy theme.

Read more »

Happy coal miner.
Energy Shares

How these ASX 200 energy shares could unexpectedly burn brighter

ASX 200 energy shares are facing rising global demand for their products.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

ASX energy shares losing charge amid fresh warnings of gas supply shortfalls

Many energy commodity prices fell overnight and this is hitting ASX energy shares today.

Read more »

A miner stands in front oh an excavator at a mine site
Energy Shares

'We have reached a bottom': 5 ASX uranium shares leaping higher this week

ASX uranium stocks have enjoyed explosive share price growth over the past year.

Read more »