Why has the Beach Energy (ASX:BPT) share price leapt 6% in a week?

Rising oil prices have no doubt played a part in Beach Energy's stellar week. Let's take a look.

Key points
  • The Beach Energy share price has risen by more than 6% since market close on 15 March 
  • The company's shares finished today more than 3% in the green 
  • Rising oil prices have had a positive impact on Beach Energy shares 

The Beach Energy Ltd (ASX: BPT) share price has had a good week on the back of rising oil prices.

The energy company's shares have climbed 6.5% since market close on March 15. In today's trade, the Beach Energy share price finished 3.17% ahead at $1.63.

Let's take a look at what might be impacting the Beach Energy share price.

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Image source: Getty Images

Oil prices

Beach Energy shares have likely jumped amid rising oil prices in the past week. International benchmark Brent crude oil prices have risen from US$99.91 per barrel to US$118.61 per barrel since 15 March, Trading Economics data shows. This is a nearly 19% lift in the oil price.

Oil prices jumped 7% in overseas markets overnight, as my Foolish colleague James reported today. Tightening supply is continuing to impact oil prices.

Global oil prices surged after reports European Union nations were considering a Russian oil embargo, Aljazeera reported. The US President Joe Biden has been holding talks with EU governments aimed at hardening the West's response to Moscow for invading Ukraine.

This rise in prices is likely to have impacted the Beach Energy share price, given its position as an oil and gas exploration and development company.

Similarly, Beach Energy is not the only ASX energy share to rise in the past week. The Santos Ltd (ASX: STO) share price has climbed 7.6% since market close on 15 March, while Woodside Petroleum Limited (ASX: WPL) has climbed 3.7%. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) has risen nearly 5% in the same time frame.

Mizuho Bank has named two factors pushing oil prices higher, CNBC noted — the continuing Russia and Ukraine uncertainty along with hope China's COVID impact could be less severe than expected.

In recent news, Beach Energy announced on 2 March it would sell off some of its assets in the Cooper Basin. Bass Oil Ltd (ASX: BAS) has entered a sale and purchase agreement with a subsidiary of Beach Energy.

Beach Energy share price snapshot

The Beach Energy share price has descended nearly 7% in the past 12 months but is exploding 29% year to date. For comparison, the  S&P/ASX 200 Index (ASX: XJO) has returned nearly 9% over the past year.

In the past month alone, Beach Energy shares have soared by 10%.

Beach Energy has a market capitalisation of about $3.7 billion.

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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