Woodside Energy Group Ltd (ASX: WDS) shares closed 0.56% lower at $33.96 on Tuesday afternoon.
Despite closing the day in the red, the oil and gas producer's shares are up 7.4% for the month and 71.08% higher than just one year ago.
Woodside shares have rallied 43.5% higher for the year to date, with the most significant increase seen after the conflict between the US and Iran escalated in late February.
Rising oil prices have acted as a strong tailwind for the oil and gas giant's shares over the past six weeks. Conflict in the Middle East has threatened the movement of oil in the region, while shipping disruptions and production cuts caused prices to skyrocket to a multi-year high. While the price of oil has now softened, it's still significantly higher than in late February.
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So, if I bought $10,000 worth of Woodside shares at the start of 2026, what are they worth now?
Woodside shares were trading at $23.66 a piece on the first day of trading in January. The 43.5% increase in the trading price at the time of writing means that $10,000 worth of shares bought on the 2nd of January is now worth a huge $14,350.
Meanwhile, any investor who bought $10,000 worth of Woodside shares 12 months ago would now be sitting on $17,108!
Can Woodside shares keep climbing higher?
I think there is great potential for another share price rally this year.
Global oil supply concerns arising from the ongoing conflict in the Middle East are acting as a significant tailwind for Woodside shares. Peace talks between the US and Iran ended early Sunday morning in Islamabad, Pakistan, without a deal to end the war, sparking concerns that the two nations could be a long way away from a ceasefire agreement.
Meanwhile, Woodside has robust financials and reported a strong 2025 result in late February, suggesting that the company is well-positioned for continued growth.
The announcement confirmed an all-time high full-year production of 198.8 million barrels of oil equivalent (MMboe), topping guidance. Its costs fell 4% for the calendar year, and while revenue dropped 1%, its EBITDA was in line with 2024.
What do analysts think of the stock?
I think Woodside shares are a screaming buy right now, but analysts are a little more reserved.
TradingView data shows that seven out of 14 brokers have a hold rating on the stock, while another five have a buy or strong buy rating on Woodside shares. Another two brokers have a sell or strong sell rating.
The average target price is $32.93, which implies a potential 3.04% downside at the time of writing. However, others are more bullish and think the shares could jump 26.8% to $43.05 over the next 12 months.
