It’s a good day for the Santos Ltd (ASX: STO) share price. It’s storming higher despite no news having been released by the company.
However, oil prices are on the up-and-up and a broker has tipped a 22% upside for the company’s stock.
At the time of writing, the Santos share price is $8.23, 1.86% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.22% while the S&P/ASX 200 Energy Index (ASX: XEJ) outperforms.
Let’s take a closer look at what might be going on with the oil and gas giant’s shares on Monday.
Santos share price rallies into the week
The Santos share price is in the green today, potentially driven by higher oil prices.
Global oil prices lifted on Friday amid expectations the European Union might ban Russian oil and the lockdown in Shanghai could end on 1 June, according to CommSec.
Brent crude oil price increased 0.5% to US$112.55 a barrel on Friday while the US Nymex crude oil price rose 0.9% to reach US$113.23 a barrel.
That’s likely also helping to boost the energy sector 0.85% higher today. The sector is the ASX 200’s second best performer on Monday and one of just two outperforming the broader market right now.
It’s being led by the Paladin Energy Ltd (ASX: PDN) share price’s 2.38% gain.
Santos’ stock is the index’s second best performer today while that of Woodside Petroleum Limited (ASX: WPL) is coming in third.
Finally, the Santos share price might be being lifted by news of a positive broker note.
As my colleague James Mickleboro reported earlier, Morgans slapped Santos’ shares with a $10 target and an add rating. That represents a 22% upside on its current level.
The Santos share price has gained 24.5% in 2022. It’s also 22.1% higher than it was this time last year.
The post Why is the Santos share price leaping higher on Monday? appeared first on The Motley Fool Australia.
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More reading
- 2 ASX energy shares that brokers rate as buys for exposure to sky high oil prices
- 5 things to watch on the ASX 200 on Monday
- Here are the 3 most traded ASX 200 shares on Friday
- New or old energy: Have oil producers bested ASX lithium shares?
- 5 things to watch on the ASX 200 on Thursday
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 Scott Phillips.
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