The Woodside Energy Group Ltd (ASX: WDS) share price is jumping today despite oil prices hitting a three month low.
Woodside shares are currently swapping hands at $30.37, a 0.56% jump.
So what is going on with the Woodside share price today?
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Oil and gas price impact
Woodside shares are rising amid a mixed day for ASX oil and gas shares. The Santos Ltd (ASX: STO) share price is down 1.64% today. However, Beach Energy Ltd (ASX: BPT) shares are rising 0.62%.
The S&P/ASX 200 Energy Index (ASX: XEJ) is slightly in the red, down 0.19%.
Oil prices fell 2% to the lowest level in 12 weeks, Reuters reported. Brent oil fell 2% to US$100.69 a barrel, while WTI crude oil dropped 1% to US$98.53 a barrel overnight. This was reportedly sparked by the impact of a global recession on energy demand.
Mizuho energy futures executive director Robert Yawger, in a quote cited by Reuters, said:
There are undeniably concerns about recessionary demand destruction, plus, WTI open interest at multi-year lows has created a bit of a liquidity crunch
Gas prices on the other hand, told a different story. ANZ economist Madeline Dunk highlighted that European gas prices rose due to fears of supply shortages. Dutch futures jumped 3.6% to EUR170.99 per MWh. In a research report, Dunk said:
The continent is facing its biggest energy crisis as Russian gas flows continue to fall.
The rising gas prices are pushing electricity prices to record highs..
Rising gas demand could be an opportunity for Woodside. The company merged with BHP Group Ltd (ASX: BHP)'s oil and gas portfolio in early June this year to create a top 10 global oil and gas producing company.
Woodside share price snapshot
The Woodside share price has soared 38% year to date, while it has jumped 28% in the past year.
For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) has jumped 21% year to date, and 15% in the past year.
Woodside has a market capitalisation of about $57.5 billion based on the current share price.
