Where is the Woodside share price headed in October?

Will this oil and gas giant be able to outperform in October?

Key points
  • Woodside shares have gone up strongly so far in October
  • The energy company has outperformed the wider ASX 200, and multiple brokers still think it’s a buy
  • However, the oil price has been going backwards in recent months

The Woodside Energy Group Ltd (ASX: WDS) share price has started October off with a bang.

At Wednesday's market close, Woodside shares have risen by around 7% since the start of the month.

Although the performance over the last five days isn't necessarily going to be repeated over the next five days, or even over the rest of the month.

But, share markets have rebounded strongly after September. The S&P/ASX 200 Index (ASX: XJO) has jumped by 5.3% in October to date — it has seen a lot of the ground lost in September already recovered in less than a week of the new month. This is likely due to investors thinking that interest rates may not go as high as previously feared.

As readers may have noticed, the Woodside share price has outperformed the ASX 200 in October so far.

Gas and oil worker working on pipeline equipment.

Image source: Getty Images

What could happen next?

Of course, anything could happen next. Without a crystal ball, it's impossible to know.

June saw a number of ASX shares hit a low point for 2022. But then they started climbing.

We've seen ASX shares (and global shares) go up considerably in the last few days. But some piece of news could send them down again. Or even higher. Or valuations could stay at this level for a while. Who knows?

The combination of inflation and rising interest rates is causing considerable volatility. For quite a lot of the year, it has meant declines for the market, but volatility includes periods of upswings as well. We may already have seen the bottom.

As with all energy companies, one of the key factors that can influence the Woodside share price, profit, cash flow and dividend is what happens with resource prices.

The business benefited after energy prices increased following the Russian invasion of Ukraine. But, in recent weeks and months, the oil price has been drifting lower.

When the resource price goes up, it's good for a commodity business. It costs roughly the same to produce a barrel of oil (equivalent), so higher revenue for the same amount of resource largely adds to profit.

But the same is true in reverse. When the resource price drops, it can largely reduce profit and cash flow.

Which way will the oil price go next? The Russian invasion of Ukraine continues. However, investors may be worrying that there is a greater risk of global recession, which could reduce demand for oil and therefore impact the oil price.

Broker ratings on the Woodside share price

It's hard to say what a share price will do this week or even this month.

However, brokers like to release price targets. This is where the experts believe that the share price will be in 12 months from now.

For example, the broker Morgan Stanley has an overweight (buy) rating on Woodside with a price target of $37. That implies a possible rise of around 10%.

The broker Citi also rates Woodside as a buy, with a price target of $36.50. That implies a possible rise of close to 10%. It likes Woodside for its exposure to LNG and that it may benefit amid the European energy crisis.

Woodside share price snapshot

Over the past six months, the Woodside share price virtually hasn't moved.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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.

More on Energy Shares

A man and his small son crouch in a green field under a beautiful sunset sky looking at renewable, wind generators for energy production.
Energy Shares

Genesis Energy posts customer growth and advances renewables in FY27 Q1 update

Genesis Energy grew customer numbers to 493,450 and advanced its renewables pipeline in a strong FY27 Q1 update.

Read more »

A traffic light with the green light flashing representing the BHP board moving forward with unification of corporate structure
Energy Shares

APA Group green-lights Bulloo Interlink Pipeline, announces Origin Energy deal

APA Group has green-lit its Bulloo Interlink Pipeline, backed by a new five-year gas transport deal with Origin Energy.

Read more »

Two colleagues working with company financial results.
Energy Shares

Santos delivers record Q3 production and earnings in 2026

Santos delivered record Q3 production and sales revenue, with Barossa and Pikka ramping up and full-year guidance tightened.

Read more »

Couple on their laptop in their home kitchen.
Energy Shares

Beach Energy posts record Q1 sales revenue and higher production

Beach Energy posts record Q1 sales revenue and higher production, with cash flow risks easing after major project milestones.

Read more »

A person bounces another up high from a seesaw as the one in the air looks through a telescope into the future.
Resources Shares

2 ASX stocks down 28% to 30% in a month I'd buy right now

Both of these ASX stocks are expected to rebound strongly over the next 12 months.

Read more »

male worker in hi-vis checking the balance of the hydrogen tanks
Energy Shares

Meridian Energy posts record Q1 hydro generation in FY27 update

Meridian Energy posts record first quarter hydro generation for FY27 and keeps investment plans on track.

Read more »

a uranium-fuelled mushroom shaped cloud explosion surrounded by a circle of rainbow light with a symbol of an atom to one side of it.
52-Week Lows

I think this ASX share is a bargain buy after hitting a 52-week low: Here's why

Brokers tip a rebound ahead. But by how much?

Read more »

Smiling oil worker in front of a pumpjack.
Energy Shares

$10,000 invested in Woodside shares 12 months ago is now worth…

Woodside shares have had a successful 12 months.

Read more »