The S&P/ASX 200 Index (ASX: XJO) is climbing once more on Tuesday, reaching its highest point since mid-September. Interestingly, S&P/ASX 200 Energy Index (ASX: XEJ) shares are among those leading its gains despite an overnight fall in oil prices.
The energy sector is currently up 1.61% compared to the broader ASX 200's 0.9% rise.
Meanwhile, shares in many of the market's favourite ASX 200 energy giants are taking off. Here's how they're trading right now:
- The Beach Energy Ltd (ASX: BPT) share price is up 2.96% right now to $1.637
- Santos Ltd (ASX: STO) stock has gained 1.95% to trade at $7.85
- Shares in Woodside Energy Group Ltd (ASX: WDS) have lifted 1.83% to $36.64
- Karoon Energy Ltd (ASX: KAR) shares have gained 2.36% to reach $2.17
So, what might be going on with energy shares today? Let's take a look.
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ASX 200 energy shares outperform despite oil woes
Tuesday has shaped up to be a good day for ASX 200 energy shares despite falling oil prices.
The Brent crude oil price fell 1% to US$94.83 a barrel as most of Australia slept, while the US Nymex crude oil price dropped 1.6% to US$86.53 a barrel.
The black liquid's value slumped amid news United States upped its oil output to a new post-pandemic high in August, reaching nearly 12 million barrels a day.
Meanwhile, US President Joe Biden has called on oil producers to increase their production in an effort to tackle energy prices, Reuters reports.
Oil prices may have also been dragged down by news of falling factory activities in China.
The purchase manager index (PMI) of the nation's manufacturing industry fell 0.9% in October to 49.2% amid COVID-19-induced lockdowns. A figure under 50% indicates activities are contracting. This could reduce Chinese demand for oil.
Fortunately, the headlines apparently haven't dinted ASX 200 energy shares. The sector is continuing on its upwards trajectory.
Today's gain sees it nearly 39% higher than it was at the start of 2022. It has also risen 33% since this time last year.
