S&P/ASX 200 Index (ASX: XJO) energy shares are outpacing the benchmark today.
The ASX 200 is down 0.22% in late morning trading after heading lower from the open.
However, the big energy stocks are helping drive the S&P/ASX 200 Energy Index (ASX: XEJ) significantly higher, up 0.48%.
At the time of writing, the Santos Ltd (ASX: STO) share price is up 0.35%.
Meanwhile, rival ASX 200 energy share Woodside Energy Group Ltd (ASX: WDS) is marching 0.59% higher at this same time.
What's helping lift these ASX 200 energy shares?
The Santos and Woodside share prices both look to be benefiting from rising crude oil prices.
In fact, US West Texas Intermediate (WTI) hit its highest level in 2023 overnight, trading for US$83.26 per barrel. That's up 24.7% from the recent lows of US$66.74 per barrel WTI was fetching on 17 March.
Brent crude is also nearing 2023 highs, reaching US$87.33 per barrel overnight. That same barrel was trading for US$72.97 on 17 March.
The oil price, and by connection these ASX 200 energy shares, have been marching higher largely due to supply-side issues.
While the market remains concerned about a potential global recession denting energy demand, the recent production cuts by OPEC+ look to be achieving what the cartel's members hoped. 'Plus' member Russia's oil shipments were reported to have fallen to the lowest levels in two months.
Declining US inventories also look to be supporting the higher oil price.
Commenting on the market moves, market analyst at StoneX Fawad Razaqzada, pointed to the latest inflation report out of the United States.
"The weaker US CPI print has raised doubts over whether the Fed will now hike rates at all next month," he said (quoted by Reuters). "Falling interest-rate expectations is reducing recession concerns and helping to support buck-denominated asset prices at the same time."
With oil still priced in greenbacks, a lower US dollar forecast looks to be good news for ASX 200 energy shares Santos and Woodside today.
