Oil markets have been in the spotlight as geopolitical risks have spiked.
The WTI crude oil price hit US$105.42 a barrel last Friday, up more than 4% in a single session, as escalating Middle East tensions raised fears of supply disruptions.
For ASX energy investors, the question is straightforward: which ASX stocks stand to gain the most?
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Santos Ltd (ASX: STO)
Santos is Australia's second largest oil and gas producer and one of the most direct ways to play rising oil prices on the ASX.
The company operates assets across Australia, Papua New Guinea, Timor-Leste, and Alaska.
Every dollar rise in the oil price flows almost immediately into higher realised revenue for the company.
In Q1 2026, Santos reported a 3% rise in sales revenue to US$1.27 billion, with a 6% jump in average pricing more than offsetting slightly softer volumes.
Santos shares are up more than 30% since the start of the year, reflecting the energy price tailwind.
However, the stock still trades at a discount to many of its global peers.
Woodside Energy Group Ltd (ASX: WDS)
Woodside Energy Group is one of Australia's largest listed energy companies.
The company has a market capitalisation of approximately $60 billion and major operations spanning Western Australia, the Gulf of Mexico, and other international regions.
Because Woodside sells its production into global energy markets, stronger crude prices translate directly into higher realised prices, stronger operating cash flow, and improved shareholder returns.
In Q1 2026, Woodside posted a 7% quarter-on-quarter increase in operating revenue to US$3.26 billion, driven by an 11% increase in its average realised price to US$63 per barrel of oil equivalent.
The company's Scarborough Energy Project is 94% complete, with first LNG still targeted for Q4 2026, which should add materially to earnings once the project becomes operational.
Beach Energy Ltd (ASX: BPT)
Beach Energy offers a more leveraged and higher-risk play on rising oil and gas prices.
The potential upside is therefore also higher.
The company posted a 7% lift in production to 4.8 million barrels of oil equivalent in Q3 FY2026, with quarterly sales revenue of $419 million supported by a 19% lift in realised oil prices.
The ramp-up of the Waitsia Gas Plant in Western Australia has been the standout operational development, with production rates returning to above 200 terajoules per day after earlier weather and compressor setbacks.
Moreover, Beach Energy has strengthened its balance sheet, with available liquidity rising to $974 million and net gearing falling to just 11%.
Bell Potter highlights some risks for Beach Energy but maintains a hold rating with a $1.15 price target.
The broker noted that production growth should return in FY27 as capex eases, enabling positive free cash flow and ongoing dividends.
Foolish takeaway
Oil prices remain highly sensitive to geopolitical events and can reverse quickly.
However, with Middle East tensions showing little sign of easing and supply concerns persisting, Santos, Woodside, and Beach Energy each offer a different risk and return profile for investors wanting exposure to elevated energy prices.
