The Beach Energy Ltd (ASX: BPT) share price is edging higher on Tuesday afternoon despite no announcements from the company.
At the time of writing, the energy producers' shares are 3.47% higher to $1.79 a pop.
For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green by 0.25% to 6,806 points.
Let's take a look at what's fuelling Beach Energy shares to a 4-week high.
Beach Energy rally ahead of crucial Fed Reserve decision
Investors are bidding up the Beach Energy share price following a strong uplift across the S&P/ASX 200 Energy (ASX: XEJ) index today.
The ASX 200 benchmark energy sector is the best performer among the ASX indices, rising 2.55% to 10,076.5 points.
This represents a sharp rebound after falling more than 4% over the past three consecutive trading days.
It appears short sellers are closing out on their bets against exchange-traded funds (EFTs) tied to oil.
According to oilprice.com, there is the belief that the days of oil entering into bear market territory are now over.
In effect, this has led the price of the West Texas Intermediate (WTI) to climb 1.35% to US$98 a barrel.
However, with crucial data to be reported out of the United States this week will without doubt have an impact on energy markets.
The Federal Reserve is set to decide on whether to lift interest rates or not on Wednesday following the latest CPI data.
Shares in fellow energy peers, Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) are up 2.34% and 2.65%, respectively.
Beach Energy share price snapshot
Despite wobbling in the past few weeks, the Beach Energy share price has gradually travelled upwards to post a gain of 44% since the start of the year.
The company's shares are around 7% off their 52-week high of $1.905 achieved on 9 June.
Beach Energy has a price-to-earnings (P/E) ratio of 10.16 and commands a market capitalisation of roughly $3.95 billion.
