Why is the Santos share price on such a tear today?

Oil prices might be bolstering the ASX 200 energy giant's stock on Tuesday.

Key points
  • It's a good day to be invested in Santos shares. The ASX 200 energy giant's stock is leaping 2.37% higher to trade at $7.33
  • It's joined in the green by many of its ASX 200 energy peers as the sector lifts 2.31% in afternoon trading
  • The gains follow a notable lift in global oil prices overnight 

The Santos Ltd (ASX: STO) share price is defying the market's struggles on Tuesday to launch higher amid surging oil prices.

At the time of writing, the Santos share price is $7.33, 2.37% higher than its previous close. Earlier today, it reached a high of $7.435 a share, a gain of 3.85%.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.02%, dragged lower by the flailing tech sector.

Let's take a closer look at what's driving the ASX 200 energy giant to outperform today.

Female oil rig worker wearing high vis vest, red gloves and hardhat smiles at camera with a green painted oil rig in the background

Image source: Getty Images

What's energising the Santos share price on Tuesday?

Santos' stock is taking off on Tuesday alongside many other ASX energy shares.

In fact, the S&P/ASX 200 Energy Index (ASX: XEJ) is currently the ASX 200's best performing sector, up 2.31% in early afternoon trading.

Its rise likely comes on the back of surging oil prices. The price of Brent crude oil gained 5.1% overnight to trade at US$106.27 a barrel while the US Nymex crude price lifted 5.1% to reach US$102.60 a barrel.

The commodities' rise came amid a weakening US dollar and news a Russian gas giant told European customers it can't guarantee gas supplies, Reuters reports.  

Right now, the Santos share price is among the ASX 200's energy sector's best performers.

However, it's shadowing the gains of Whitehaven Coal Ltd (ASX: WHC), Beach Energy Ltd (ASX: BPT), Woodside Energy Group Ltd (ASX: WDS), and New Hope Corporation Limited (ASX: NHC). They're each currently up more than 3%.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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 Scott Phillips.

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