The Santos Ltd (ASX: STO) share price is having a top run on Friday.
Santos shares are 4.62% in the green and currently trading at $7.815. For perspective, the S&P/ASX 200 (ASX: XJO) is up 1.88% today.
Let's take a look at why the Santos share price is rising today.
Oil prices storm higher
Santos is a major oil and gas producer. The Woodside Energy Group Ltd (ASX: WDS) share price is also up 4% today, while Beach Energy Ltd (ASX: BPT) shares are soaring 5.76%. The S&P/ASX 200 Energy Index (ASX: XEJ) is 4% in the green.
Energy shares including Santos are rising after oil prices lifted overnight.
Brent crude oil jumped 2.29% to $94.57 a barrel. US Energy Information data revealed distillate stockpiles including heating oil fell by 4.9 million barrels a day in the week ending 7 October, Reuters reported. Price Futures Group analyst Phil Flynn, quoted by the publication, said:
The most disturbing part of the (EIA) report is that distilling inventories are so far below average.
The market is looking at the big picture, as opposed to the short-term demand numbers that were impacted by the storm.
Meanwhile European natural gas swung widely overnight following a hoax threat to the Norwegian Ormen Lange natural gas field. However, benchmark futures dropped 4% after grid operator Shell Plc clarified there was no disruption to gas transport, Bloomberg reported. Oxford Institute for Energy Studies senior research fellow Katja Yafimava told the publication:
Any incident — serious or not so serious — that could potentially result in disruption of either production or transport facilities used for supplies of non-Russian gas to Europe is bound to make the market more and more nervous.
Volatility is the new normal.
Santos share price snapshot
The Santos share price has gained 6% in the past year, while it is soaring 24% year to date.
For perspective, the ASX 200 has shed 7% in the past year.
Santos has a market capitalisation of more than $26 billion based on the current share price.
