Energy shares are boosting the S&P/ASX 200 Index (ASX: XJO) into the green on Friday.
At the time of writing, the S&P/ASX 200 Energy Index (ASX: XEJ) has lifted 1.86%, helping the broader index to boast a 0.77% gain.
Let’s take a look at why ASX 200 energy shares are ending the week on a high.
ASX 200 energy shares lead the market on Friday
ASX 200 energy shares are among the market’s top performers today amid commodity price movements.
Interestingly, the sector is currently led by the share price of uranium producer Paladin Energy Ltd (ASX: PDN). It’s 5.6% higher, trading at 76 cents.
The uptick comes after the price of uranium tumbled to its lowest point in three months this week. However, it lifted slightly overnight.
Right now, the nuclear-necessity is trading for US$47.65 a pound, according to Trading Economics. That’s down from April’s 10-year high of around US$65 a pound.
It’s easier to explain the gains posted by oil and gas producers Beach Energy Ltd (ASX: BPT), Woodside Energy Group Ltd (ASX: WDS), and Santos Ltd (ASX: STO). Their share prices are currently up 3.9%, 3.4%, and 0.4% respectively.
The stocks are likely rallying on the back of surging oil prices. The Brent crude oil price lifted 3% to reach US$117.40 a barrel overnight and the US Nymex crude oil price gained 3.4% to hit US$114.09 a barrel, reports CommSec.
The commodity’s surge is said to have been inspired by data released on Wednesday. It showed US gasoline stockpiles have fallen to their lowest seasonal level since 2014.
Finally, ASX 200 coal shares such as Whitehaven Coal Ltd (ASX: WHC) are also outperforming today as the price of the black rock nears its all-time high.
The commodity is currently trading at US$403 a tonne – just 7.9% lower than the record high of US$435 it hit in March.
The coal giant’s stock is swapping hands for $5.17 on Friday, representing a 2.6% gain.
The post TGIF: Here’s why ASX 200 energy shares are outperforming today appeared first on The Motley Fool Australia.
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More reading
- ‘We’re close to the bottom’: Expert flags share market sectors to buy before the rally
- 5 things to watch on the ASX 200 on Friday
- Here are the 3 most traded ASX 200 shares on Thursday
- Why Catapult, Costa, Endeavour, and Whitehaven Coal shares are dropping
- Why are ASX coal shares sliding today?
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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