Global oil and energy stocks are staging a comeback rally today as the price of oil crept back up above US$100 per barrel overnight. Shares in Woodside Petroleum Limited (ASX: WPL) have latched onto the momentum and are now trading 2.5% higher at $32.44 apiece today.
After retreating over the past few weeks, oil prices are again soaring amid reports the Kremlin has cast doubt on achieving peace talks with Ukraine.
The move caused investors to chase product in an already thinning market, Bloomberg reports.
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What's going on with oil and Woodside?
Brent crude futures had already surged more than 7% by Monday as news surfaced that some EU countries would back an import ban on Russian oil, according to Trading Economics.
Meanwhile, other nations, such as Germany and Italy, are more hesitant to immediately shut supply, due to already-increasing energy costs.
Brent futures are now sitting at US$118 per barrel after bouncing hard off a low of US$98 per barrel not even a week ago.
Bloomberg also reports that the Brent contract – also the global oil benchmark – had consecutive price swings of more than $5 during the day for 16 consecutive sessions, an all-time record.
Woodside shares appear to be benefitting from those prices today. The current price represents a 15% gain over the past month and a 48% gain since trading restarted back in January.
The move in oil has been a net positive for ASX hydrocarbons producers, and the gains have been realised across the board.
Woodside shares have rallied hard these past few weeks amid the volatility in oil and energy markets, and some experts are predicting these trends to inflect well on the company.
"Stronger commodity prices have resulted in vastly different sentiment towards the [energy] sector relative to last year," JP Morgan analysts wrote in a recent note.
Natural gas prices have also skyrocketed this year, and are back in an uptrend, currently trading at US$4.93/MMBtu.
Meanwhile, 73% of analysts covering Woodside have it as a buy right now. That's versus just 6% as a sell, and 20% holding a neutral stance, per Bloomberg data.
This number has crept up from just 56% urging clients to buy this time last year, and the consensus price target has increased from around $26 to $32.34 in that time.
A bit more on Woodside shares
In the last 12 months, Woodside shares have climbed more than 31%. They are also up almost 50% in the past six months and are in fact trading up across all major time frames.
