ASX 200 energy shares are jumping today on the back of higher oil and natural gas prices.
The S&P/ASX 200 Energy Index (ASX: XEJ) is climbing 1.6% at the time of writing. In contrast, the S&P/ASX 200 Index (ASX: XJO) is up 0.66%.
Let's take a look at what is boosting ASX 200 energy shares today.
ASX 200 energy shares rise
On a good day for ASX 200 energy shares, the Woodside Petroleum Limited (ASX: WPL) share price is up 1.64%, while Santos Ltd (ASX: STO) is rising 1.3%. Meanwhile, Beach Energy Ltd (ASX: BPT) shares are up 2.85% and the AGL Energy Limited (ASX: AGL) share price is climbing 1.94%.
Oil prices surged by 5% after the European Union put forward a plan to ban Russian crude oil imports within six months. The proposal was outlined in a speech to parliament by European commission president Ursula von der Leyen, the Wall Street Journal reported. The EU is also looking at other financial sanctions.
Von der Leyen said: "With all these steps, we are depriving the Russian economy from its ability to diversify and modernise."
Brent crude oil is currently priced at US$110.26 per barrel, while WTI crude oil is US$107.87 a barrel, Bloomberg data shows.
Meanwhile, natural gas price futures also surged to more than 13-year highs in the US on Wednesday. The natural gas price is currently trading at US$8.425 per million British thermal units (MMBTu), Trading Economics data shows. This is the highest level since July 2008. Higher temperatures in May and an early start to the air-conditioning season are increasing demand for gas in the US, oilprice.com reported.
Among the ASX 200 energy shares, Woodside today announced plans for a carbon re-use project in collaboration with Eastern Metropolitan Regional Council in Perth. This is subject to a final investment decision later this year.
Woodside, Santos, and Beach Energy are oil and gas producers, while AGL energy is involved in gas and electricity markets.
Share price recap
The S&P/ASX 200 Energy Index (ASX: XEJ) has ascended 30% this year to date. For perspective, the benchmark ASX 200 index has fallen 1.2% over the same period.
Woodside shares have outperformed the index this year, surging 44%. Meanwhile, Santos has soared by 29%, Beach Energy has rocketed nearly 35%, and AGL Energy has ascended 37%.
