ASX oil and gas shares are climbing again today. Ampol Ltd (ASX: ALD) shares are up 3.7% to $30.50, and Beach Energy Ltd (ASX: BPT) shares have climbed 2.47% to $1.143.
Even leading Australian oil and gas producers and suppliers, Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) shares, are outperforming the S&P/ASX 200 Index (ASX: XJO) at the time of writing.
Santos shares are 1.29% higher at $7.48 a piece, while Woodside shares are 1.82% higher at $30.98 a piece, at the time of writing.
For context, the ASX 200 Index is trading in the red, down 1.19% for the day so far.
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Why are these ASX energy stocks climbing higher today?
The price of oil has rebounded, creating a strong tailwind for ASX shares involved in oil transportation, supply, or production.
Oil prices peaked at a multi-year high of over US$100 per barrel earlier this week before temporarily dropping to below the US$80 mark. The price climb has now resumed.
According to Trading Economics, the price of WTI crude oil has now rocketed back up past US$90 per barrel. At the time of writing, oil is trading at US$93.566 per barrel. That's a 7.05% increase in one day. The fuel is now 48.83% higher over the past month.
The price of Brent crude oil has also jumped to a multi-year high of US$97.788 per barrel. That's a 6.29% increase over the day and a 44.79% hike from last month.
Trading Economics stated that persistent concerns around the Iran war have overshadowed the International Energy Agency (IEA)'s approval for nations to release emergency oil reserves.
Trading Economics said:
In the latest developments, Iraq halted operations at its oil terminals after two oil tankers were targeted in Iraqi waters, underscoring heightened supply risks in the Middle East.
Iran also told intermediaries that the US must guarantee that neither it nor Israel will strike the country in the future for a ceasefire to be considered, which Washington is unlikely to accept.
Additionally, the crucial Strait of Hormuz also remains effectively shut, with several commercial vessels reportedly struck off the coast of Iran. That has prompted major Middle Eastern producers to significantly curb output, tightening global supply further.
Will Ampol and Beach Energy shares keep climbing higher?
Analysts are bullish on the outlook for Apmol shares but more bearish about Beach Energy stock.
Out of 11 analysts, nine have a buy or strong buy rating on Ampol, with a maximum target price of $36 over the next 12 months. That implies a 18.21% upside at the time of writing.
For Beach Energy, analysts are mostly neutral on the stock. Out of 15, seven have a hold rating, six have a sell or strong sell rating, and the other two have a strong buy rating. The maximum target price of $1.350 implies a potential 18.21% upside at current levels.
The concern is that these shares are heavily dependent on global oil prices, and as recent price movements have shown, oil is very volatile at the moment. Ongoing conflict in the Middle East only adds to concerns about near-term volatility and share price risk, with some warning that oil prices could keep rising.
