The S&P/ASX 200 Index (ASX: XJO) is leaping 2.47% today, but the Woodside Energy Group Ltd (ASX: WDS) is outperforming the index.
The Woodside share price is leaping 3.73% today and is currently trading at $33.245.
Let's take a look at why the Woodside share price is having such a good day.
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Oil prices rise
Woodside is lifting today, but it is not the only oil producer having a good day. The Santos Ltd (ASX: STO) share price is rising 3.7%, while Beach Energy Ltd (ASX: BPT) shares are lifting 2.84%.
Higher oil prices overnight and a promising outlook for the oil price appear to be helping major oil producers including Woodside today.
The brent crude oil price lifted 4.4% to US$88.86 a barrel and WTI crude oil price rose 5.2% to US$83.63 a barrel in global markets overnight, Reuters reported.
Oil prices jumped after news emerged the Organization of the Petroleum Exporting Countries and allied (OPEC+) may cut output by more than 1 million barrels per day. In comments cited by Reuters, Oanda market analyst Craig Erlam said:
After a year of tolerating extremely high prices, missed targets and severely tight markets, the (OPEC+) alliance seemingly has no hesitation when it comes to acting rapidly to support prices amid a deterioration in the economic outlook.
PVM Oil Associates senior analyst Stephen Brennock tipped oil prices to hit US$100 a barrel again, CNBC reported. He said:
A further uptick in trading activity coupled with tightening near-term oil fundamentals could well push oil prices back to $100/bbl.
The brent crude oil price is currently up 0.42% to US$89.23 a barrel, while WTI crude oil is up 0.18% to US$83.78 a barrel, Bloomberg data shows. Natural gas is also up 0.25% to US$6.49 per MMBtu.
Woodside share price snapshot
The Woodside share price has risen nearly 6% in the past year, while it has gained almost 5% in the year to date.
For perspective, the ASX 200 has shed more than 10% in the past year.
Woodside has a market capitalisation of more than $3.3 billion.
