Why did the Woodside share price just hit an 8-year high?

Atop Woodside's strong share price performance this year, the company also pays an 8% trailing dividend yield.

| More on:
Young businessman standing on the top of the mountain punching fist in the air.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Woodside share price hit eight-year highs this morning
  • The ASX 200 energy stock has benefited from rocketing oil and gas prices
  • The EU is set to ban Russian crude imports on 5 December, while OPEC’s output cuts are commencing this month

The Woodside Energy Group Ltd (ASX: WDS) share price notched a fresh eight-year high in morning trade.

The S&P/ASX 200 Index (ASX: XJO) energy stock was swapping hands for $39.58, up 1.1% from yesterday's close and the highest level since October 2014.

The Woodside shares have retraced since then and are currently down 1.3% for the day.

What's driving ASX 200 investor interest?

ASX 200 investors have been bidding up the Woodside share price in 2022 amid soaring gas and crude oil prices.

Oil prices went sharply higher on Friday as investors speculated that Chinese authorities may be moving away from the nation's strict COVID zero policies. The rolling lockdowns have drastically slowed China's economic growth and dampened the country's energy demand.

Chinese officials have since squashed those hopes, saying they are committed to a zero-virus policy.

Another major factor that could impact the oil price, and the Woodside share price, is the European Union's pending restrictions on Russian oil exports amid its ongoing invasion of Ukraine. Russian crude imports will be banned by the EU commencing 5 December.

And November also marks the month that the Organization of Petroleum Exporting Countries (OPEC) agreed to cut their production limits, a move likely to hit with a lagging impact.

All told, the supply and demand dynamics see Brent crude oil trading for US$97.92 today. While that's down 0.6% overnight, Brent is still up 3.4% from last Thursday, and up 16.5% from the recent lows it hit on 26 September.

Atop Woodside's strong share price gains this year, the company also pays an 8.0% trailing dividend yield, 50% franked. Certainly an appealing number for income investors, provided the company can maintain those levels of payouts going forward.

Woodside share price snapshot

The Woodside share price has rocketed 76% this year on the back of soaring crude prices, with Brent up 26% in 2022.

For some context, the ASX 200 is down 8% year to date.

Motley Fool contributor Bernd Struben 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 Share Market News

Man on a laptop thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a Garfield-eque start to the trading week this Monday.

Read more »

A young boy with a sombre face looks down at the zip fastener at the bottom of his jacket as he concentrates on unfastening the clasp.
BNPL shares

What's happening with Zip shares on their first day back aboard the ASX 200?

After a strong eight month run, Zip shares are once again part of the ASX 200.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Healthcare Shares

If you invested $5,000 in this ASX pharmaceuticals stock a year ago, you'd have $34,711 now!

Just how lucky have investors been with this stock?

Read more »

A boy stands firm on a rocky cliff holding a rocket in each hand and looking up toward the sky, anticipating flying into space.
Share Gainers

Why these 2 ASX 200 shares are surging amid today's market meltdown

Investors are bidding up these two ASX 200 shares despite the wider market meltdown. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why 29Metals, Immutep, Insignia, and Perenti shares are pushing higher today

These shares are avoiding the market selloff. But why?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Share Market News

This ASX lithium stock is down 79% in 2024, and a director just bought 300,000 shares

This lithium director just bought the dip in a big way.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why DroneShield, South32, Whitehaven Coal, and Woodside shares are tumbling today

These shares are under pressure on Monday. But why?

Read more »

A young woman slumped in her chair while looking at her laptop.
Share Market News

Why is the ASX 200 starting the week with a whimper?

The ASX 200 is tumbling on Monday. But why?

Read more »