It's turning into a decent day for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares so far this Monday. At present, the ASX 200 has gained an encouraging 0.25%, pulling the index up to around 7,575 points. But let's talk about what's going on with ASX energy shares.
Energy stocks are, on the whole, easily outperforming the broader market today so far. To start with, let's note that the S&P/ASX 200 Energy Index (ASX: XEJ) has galloped a healthy 2.08% higher this Monday.
But we can see this reflected in the prices of ASX energy shares too. Take Woodside Energy Group Ltd (ASX: WDS), the largest (by a country mile) energy stock in the ASX 200. Woodside shares are presently enjoying a 2.02% boost up to $31.81 each.
Beach Energy Ltd (ASX: BPT) is doing just as well, up 1.69% at $1.62 a share.
Santos Ltd (ASX: STO) shares are faring even better, basking in a 2.41% lift to $7.86. But it's Karoon Energy Ltd (ASX: KAR) that is leading the pack with its 2.99% rise to $1.96 a share.
It's clear that something's in the water over at the energy stock pond today. But what's going on exactly that is behind this stellar start to the trading week for this ASX sector?
Well, it could be energy prices themselves. As my Fool colleague James covered this morning, oil prices had a strong finish last week. West Texas Intermediate (WTI) crude rose 0.75% to US$78,01 a barrel, while Brent crude spiked 1.35% to US$83.55 a barrel. Since all of the ASX energy shares mentioned above prosper when oil prices rise, this could be behind today's market outperformance.
However, another development is also worth covering.
ASX energy shares rise amid US LNG pause
Over the weekend (our time), US President Joe Biden made a significant announcement. The Biden Administration is moving to initiate a "temporary pause on pending decisions of Liquified Natural Gas exports". Here's some of what Biden's statement said:
My Administration is announcing today a temporary pause on pending decisions of Liquefied Natural Gas exports – with the exception of unanticipated and immediate national security emergencies.
During this period, we will take a hard look at the impacts of LNG exports on energy costs, America's energy security, and our environment. This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.
The US Department of Energy has confirmed that existing liquified natural gas (LNG) plants and arrangements won't be affected. Nor will exports to countries that have a free trade agreement with the United States (which includes Australia).
However, the department confirmed that "until updated, DOE will pause determinations on pending applications for export of LNG to non-Free Trade Agreement countries".
So why would this news be good for ASX energy shares? Well if the Biden Administration does halt exports of LNG to some markets, ASX energy shares could be primed to take up the slack.
Of course, this is just speculation at this point. But it could also help to explain the excellent day energy stocks are having on the market this Monday. Let's see what the rest of the week holds in store.
