The share price of ASX energy stock Melbana Energy Ltd (ASX: MAY) is surging today, hitting its highest point since 2012.
Its gains come despite no news having been released by the oil and gas producer. Additionally, the S&P/ASX 200 Energy Index (ASX: XEJ) is plunging 2.91%.
At the time of writing, the Melbana Energy share price is 13 cents, 8.7% higher than its previous close.
Let’s take a look at what might be boosting the ASX energy producer’s shares today.
Why is the Melbana Energy share price soaring today?
The Melbana Energy share price is launching upwards today despite the energy sector retreating after its 5.25% gain yesterday.
The sector’s struggles come as the energy prices wobble.
Right now, West Texas Intermediate futures have recovered from a dip to trade at US$119.85 a barrel – up 0.3%, according to CNBC. Brent crude futures are 0.8% higher, trading at US$124.20 a barrel.
Meanwhile, natural gas futures have dropped 1.9% to US$4.74 per metric million British thermal unit.
That’s weighing on oil giants Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Beach Energy Ltd (ASX: BPT). Their share prices are slumping 3.37%, 3.28%, and 2.54% respectively today.
However, Melbana hasn’t been tracking its sector lately.
The ASX energy share has gained a whopping 456% year to date. That was largely driven by a 78% surge experienced by the stock when the company announced the finding of a “significant oil interval” last month.
It gained another 25% yesterday as oil prices soared to their highest point in 13 years.
Meanwhile, the energy sector is up a respectable 20% year to date, including today’s dip.
Perhaps that’s why the small-cap ASX energy share is defying the broader market today.
The post This ASX energy share is combatting its sector’s sell-off to hit 9-year highs appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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