The Woodside Energy Group Ltd (ASX: WDS) share price is in the green today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed flat yesterday, trading for $23.79. In morning trade on Tuesday, shares are changing hands for $23.94 apiece, up 0.6%.
For some context, the ASX 200 is also up 0.6% at this same time.
As for Woodside's chief competitors, the Santos Ltd (ASX: STO) share price is down 0.2% at the time of writing, while Beach Energy Ltd (ASX: BPT) shares are up 0.7%.
This comes as two forces combine to lift global oil prices from multi-year lows.
Woodside share price rises as oil lifts from lows
As you're likely aware, the Woodside share price, along with Beach Energy and Santos shares, has been struggling amid slumping oil and gas prices.
That's been driven by fears of weak demand from the United States and China as the world's top two economies may struggle to achieve their growth targets.
On Friday, Brent crude oil was trading for US$71.06 per barrel, its lowest level since December 2021.
But following this weekend's meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), and with a hurricane brewing in the energy-rich US Gulf Coast, oil ticked higher overnight.
Brent crude is up 1.1% since Friday's lows, currently fetching US$71.84 per barrel.
A cartel and a hurricane
Turning to OPEC+ first, the oil price – and, by connection, the Woodside share price – could experience some tailwinds as traders factor in the cartel's decision to delay its planned production restoration by two months in response to tumbling prices.
The voluntary production cuts of some 2.2 million barrels per day were meant to begin gradually rolling back in October. This would have seen an extra 180,000 barrels per day returned to the market commencing next month, with an extra 540,000 barrels per day produced by the end of the year.
Commenting on the group's decision, Amrita Sen, director of research at Energy Aspects said (quoted by The Financial Times), "OPEC+ have always stated they will adjust their policy depending on market conditions and that is exactly what they did as demand indications recently have been weak."
While on the subject of tailwinds, oil and the Woodside share price could get a boost as Tropical Storm Francine moves towards Louisiana in the US Gulf Coast. The storm, predicted to reach hurricane forces, has already halted production at some offshore facilities, with crew evacuating.
The region accounts for almost half of the US oil refining capacity.
According to Dennis Kissler, senior vice president for trading at BOK Financial Securities, oil prices now look oversold (courtesy of Bloomberg).
"The latest selloff of nearly US$9 a barrel has been a bit overexaggerated. The market is nearing an oversold condition and has perhaps fallen too far, too fast," Kissler said.
The Woodside share price remains down 37% over 12 months.
