Why are ASX 200 energy shares jumping today?

Two people jump and high five above a city skyline.Two people jump and high five above a city skyline.

ASX 200 energy shares are having a stellar day on the market today.

The S&P/ASX 200 Energy Index (ASX: XEJ) is currently up 4% to 11,117 points. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.4% in the green today.

Let’s take a look at what’s impacting ASX 200 energy shares today.

ASX 200 energy shares rise

ASX 200 energy shares ahead today include uranium shares Deep Yellow Limited (ASX: DYL), up 9.72% and Paladin Energy Ltd (ASX: PDN), rising 13.12%. Bannerman Energy Ltd (ASX: BMN) shares are jumping 16.67%, while Peninsula Energy Ltd (ASX: PEN) shares are rocketing 20%.

Uranium shares are rising after news emerged the Biden administration in the United States is seeking support from Congress on a $4.3 billion uranium plan. The idea is to buy enriched uranium from US producers to reduce the reliance on Russian imports, Bloomberg reports. The publication noted the US only has one commercial enrichment facility in New Mexico.

ASX listed Peninsula Energy has uranium operations in the United States, while Paladin has a project in nearby Canada.

US uranium producer Energy Fuels Inc (NYSE: UUUU) shares also rocketed nearly 12% on the New York Stock Exchange overnight.

Oil and gas producers are also having a positive day on the ASX today. Santos Ltd (ASX: STO) shares have jumped 3.48%, Woodside Energy Group Ltd (ASX: WDS) shares are leaping 5%, while Beach Energy Ltd (ASX: BPT) shares are up 1.77%.

Goldman Sachs is forecasting Brent crude oil prices will average $140 per barrel between July and September, CNN Business reported.

Benchmark crude oil leapt 1.3% overnight due to tight supplies, as my Foolish colleague James reported this morning.

Oil prices have since retreated slightly, with Brent crude now up 0.21% to US$120.82 per barrel.

Natural gas prices have also jumped 0.74% to US$9.36 MMBtu (metric million British thermal unit).

Share price snapshot

The ASX 200 energy index share price has jumped 29.9% in the past year, while it has leapt 40.7% in the year to date.

For perspective, the benchmark ASX 200 has shed more than 2% in a year.

The post Why are ASX 200 energy shares jumping today? appeared first on The Motley Fool Australia.

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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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