The Woodside Energy Group Ltd (ASX: WDS) share price is in the green on Monday.
The S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed Friday trading for $34.55. At the time of writing, shares are swapping hands for $34.93, up 1.1%
That's roughly in line with the gains posted by the benchmark index at this same time.
Here's what happened in the oil markets over the weekend.
Saudi Arabia leads new OPEC oil cuts
Oil prices marched higher over the weekend following the latest meeting of the Organization of Petroleum Exporting Countries (OPEC).
Brent crude oil is currently trading for US$77.07 a barrel. That's up 1.2% from Friday and up 6.1% since last Wednesday.
The Woodside share price has benefited from that boost, gaining 2% since last Wednesday's closing bell.
And shareholders largely have Saudi Arabia to thank.
Saudi Arabia pledged to cut its oil output by 1 million barrels a day in July. The nation remained coy on whether that cut would be extended.
None of the other OPEC+ members agreed to further output cuts. Though they did agree to maintain the existing supply reductions through to the end of 2024, Bloomberg reported.
It was just two months ago, in April, that OPEC+ announced a surprise supply cut of 1.6 million barrels a day. But sluggish global growth and weaker-than-expected demand from China have kept a lid on crude oil prices and spurred Saudi Arabia to take further action.
Commenting on the move, Saudi Energy Minister Prince Abdulaziz bin Salman said he "will do whatever is necessary to bring stability to this market".
As for the outlook for the oil price – and by extension the Woodside share price – Bob McNally, president of Rapidan Energy Group, said, "For the near term, crude prices will largely depend on a test of wills."
The battle, he said, is "between stability-seeking Saudi Arabia and bearish paper traders."
ANZ Group Holdings Ltd (ASX: ANZ) analysts Brian Martin and Daniel Hynes added (quoted by Bloomberg), "The oil market now looks like it will be even tighter in the second half of the year. The move by Saudi Arabia is likely to come as a surprise."
Woodside share price snapshot
The Woodside share price is up 6% over the past 12 months.
The ASX 200 energy stock has rebounded by more than 12% since its recent lows on 20 March.
