We may have a few more hours left for July. But we can probably (if prematurely) say that ASX shares and the S&P/ASX 200 Index (ASX: XJO) have had a great month. As it stands at the time of writing, the ASX 200 is sitting on a happy 2.8% gain since the end of June. But let's talk about the Woodside Energy Group Ltd (ASX: WDS) share price.
Again, without being too presumptuous, we can probably conclude that Woodside is on track for a stunning month for July. This ASX 200 energy share ended June at $34.44 a share. But at present, Woodside is trading at $38.27 a share. If Woodside finished up this session at that price, it would translate to a rosy 11.12% gain for the month.
So why has the Woodside share price had such a rewarding month for shareholders over July to date?
Woodside share price on track for a July to remember
Well, a higher oil price would help right off the bat. And lo and behold, this month has been an exceptionally strong one for oil prices. According to Business Insider, WTI crude was asking for around US$70 a barrel at the end of June. But today, that same barrel is costing just over US$80.
Like most energy and mining shares, Woodside's costs are relatively fixed. So if the oil prices rise, this flows almost straight to the company's bottom line. Going from $70 to $80 a barrel represents a gain of more than 14%. So it's no wonder investors have been rushing into the Woodside share price over the past month or so.
But we also got some news from Woodside earlier this month that has influenced this company's fortunes over July. As we covered at the time, on 19 July woodside released its quarterly update for the quarter ending 30 June 2023.
Woodside reported drops in sales, production and revenues for the quarter in question. However, management also reaffirmed the company's production guidance of 180–190 MMboe for the full 2023 financial year. All in all, investors took this update as a positive and continued to flock to the Woodside share price over the rest of the month.
So these factors seem to be responsible for the enthusiastic month that Woodside shares have enjoyed over July. Barring a catastrophic share price collapse sometime this afternoon, it looks as though this ASX 200 energy share is about to book a rewarding month for shareholders indeed.
Woodside share price is now up 8.3% in 2023, as well as by 16.5% over the past 12 months:
