The Woodside Petroleum Limited (ASX: WPL) share price had a strong start to the trading week.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy giant closed on Friday at $32.40 and rocketed up 1.1% to $32.75 in the first 15 minutes of trading today.
That strength may be based on early morning reports of rising crude oil prices.
But momentum turned the other way an hour later. At the time of writing the Woodside share price is down 0.9%, at $32.11 per share.
Crude oil markets in flux
There are two big and constantly-changing factors impacting crude oil prices over the past week. That is, in turn, impacting the Woodside share price.
Pressuring oil prices higher is Russia's ongoing war with Ukraine.
Among the world's top oil producers and exporters, Russia has been hit by a series of sanctions from Western nations.
Some nations have gone so far as to ban imports of Russian oil. And even in countries that still allow Russian crude, which remains the majority, companies are increasingly hesitant to take delivery.
This came as global supplies were already struggling to keep up with resurgent demand as the world emerged from the pandemic lockdowns and energy use soared.
Which brings us to the opposing force currently putting downward pressure on oil prices, and the Woodside share price.
Namely, the events unfolding in China, the world's most populous nation and second-largest economy.
While most of the world has moved towards living with the virus, China remains intent on its zero-COVID strategy. A strategy that's now seeing Shanghai, a city of some 26 million people, placed in lockdown.
Warren Patterson is the head of commodities strategy at ING Groep in Singapore.
Commenting on the opposing impacts of curtailed Russian crude oil supplies and diminished demand from China, Patterson said (quoted by Bloomberg):
There seems to be no end in sight for the current lockdowns, and clearly the longer this goes on, the more of a demand hit we will see. While the amount of impacted Russian supply is smaller-than-expected at the moment, this could change very quickly if the situation in Ukraine deteriorates further.
Take note of that last line, as it could have ramifications for the Woodside share price.
Things "could change very quickly". Depending on which direction they unfold, that could see oil prices retrace or send them sharply higher.
Woodside share price snapshot
While Brent crude oil prices have slipped almost 2% over the past 24 hours, the black gold remains up 30% from 1 January.
That's helped boost the Woodside share price nearly 42% since the opening bell on 4 January. That's compared to a 1% loss posted by the ASX 200.
