The Woodside Energy Group Ltd (ASX: WDS) share price is steaming ahead today.
The energy producer's shares are rising 3.67% and are currently trading for $31.84, having reached $32.35 soon after open. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 1.52% today.
So why is the Woodside share price having such a good day?
Woodside lifts as oil and gas prices rise
Woodside shares are rising today, but they are not alone among oil and gas producers. The Santos Ltd (ASX: STO) share price is lifting 2.55% today, while Beach Energy Ltd (ASX: BPT) shares are climbing 1.74%.
The benchmark S&P/ASX 200 Energy Index (ASX: XEJ) is rising 2.79% today.
Oil prices rose overnight following an unexpected decline in US crude and fuel reserves and a slightly weaker US dollar. Brent crude futures jumped 3.5%, while WTI crude futures leapt 4.65% higher. One analyst quoted by Reuters suggested the oil price will continue to be volatile.
CIBC Private Wealth US senior energy trader Rebecca Babin said:
I do think we are bottoming, but it is going to continue to be exceptionally volatile, and continue to be keeping easy speculative money away from this market.
Meanwhile, European natural gas also made gains overnight amid supply risk. ANZ analyst Madeline Dunk, in a research note, said the energy market was rattled after damage to the Nord Stream pipelines.
"The threat of disruptions to pipeline gas puts more reliance on LNG imports," she said.
Woodside recently signed a flexible sale and purchase agreement with German energy supply Uniper amid the European energy crisis. Woodside will apply 12 cargoes of LNG per year to Europe from January 2023 for a term up to 2039.
Woodside CEO Meg O'Neill said the deal would "provide a new source of LNG for consumers in Europe seeking alternatives to Russian gas".
Woodside share price snapshot
The Woodside share price has soared 45% in the year to date, while it has risen 35% in the last year.
In contrast, the ASX 200 has shed 12% in the year to date and 9% in the past year.
Woodside has a market capitalisation of about $60.7 billion based on the current share price.
