It is looking like it will be another great day for ASX 200 energy shares.
In morning trade, this side of the market is pushing higher yet again despite the market weakness.
Here's a summary of how some shares are performing on Thursday:
- The Beach Energy Ltd (ASX: BPT) share price is up 2.5% to $1.64.
- The Karoon Energy Ltd (ASX: KAR) share price is up 3% to $2.60.
- The Santos Ltd (ASX: STO) share price is almost 2% to $7.80.
- The Woodside Energy Group Ltd (ASX: WDS) share price is 3% to $36.75.
Why are ASX 200 energy shares rising?
Investors have been buying Woodside and other energy shares today after oil prices charged higher.
According to Bloomberg, the WTI crude oil price is up 3.6% to US$93.67 a barrel and the Brent crude oil price is up 2.7% to US$96.52 a barrel. Both benchmarks reached their highest levels of the year during intraday trading.
Traders were bidding oil prices higher overnight after U.S. crude inventories fell more than expected. Together with OPEC's production cut plans, this has intensified supply concerns.
According to the CNBC, crude oil stockpiles at the important Cushing storage hub in Oklahoma fell by 943,000 barrels in the week to just under 22 million barrels. This is the lowest since July 2022.
Dennis Kissler, senior vice president of trading at BOK Financial, told the media outlet:
The big news was the storage in Cushing. And that's causing the whole complex to rally. The biggest concern for traders is Cushing getting near multi month, operational lows. That's a bullish force for crude prices.
Also boosting oil prices was news that Russian President Vladimir Putin has ordered his government to ensure retail fuel prices stabilise after a recent jump caused by an increase in exports. This is likely to see restrictions on grey fuel exports, reducing supply further.
Time will tell what knock-on effect this has on inflation and interest rates.
The S&P/ASX 200 Energy index is now up 16% over the last 12 months.
