Woodside share price defies 3-month low in oil prices

The Woodside Energy Group Ltd (ASX: WDS) share price is jumping today despite oil prices hitting a three month low.

Woodside shares are currently swapping hands at $30.37, a 0.56% jump.

So what is going on with the Woodside share price today?

Oil and gas price impact

Woodside shares are rising amid a mixed day for oil and gas producers. The Santos Ltd (ASX: STO) share price is down 1.64% today. However, Beach Energy Ltd (ASX: BPT) shares are rising 0.62%.
The S&P/ASX 200 Energy Index (ASX: XEJ) is slightly in the red, down 0.19%.

Oil prices fell 2% to the lowest level in 12 weeks, Reuters reported. Brent oil fell 2% to US$100.69 a barrel, while WTI crude oil dropped 1% to US$98.53 a barrel overnight. This was reportedly sparked by the impact of a global recession on energy demand.

Mizuho energy futures executive director Robert Yawger, in a quote cited by Reuters, said:

There are undeniably concerns about recessionary demand destruction, plus, WTI open interest at multi-year lows has created a bit of a liquidity crunch

Gas prices on the other hand, told a different story. ANZ economist Madeline Dunk highlighted that European gas prices rose due to fears of supply shortages. Dutch futures jumped 3.6% to EUR170.99 per MWh. In a research report, Dunk said:

The continent is facing its biggest energy crisis as Russian gas flows continue to fall.

The rising gas prices are pushing electricity prices to record highs..

Rising gas demand could be an opportunity for Woodside. The company merged with BHP Group Ltd (ASX: BHP)’s oil and gas portfolio in early June this year to create a top 10 global oil and gas producing company.

Woodside share price snapshot

The Woodside share price has soared 38% year to date, while it has jumped 28% in the past year.

For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) has jumped 21% year to date, and 15% in the past year.

Woodside has a market capitalisation of about $57.5 billion based on the current share price.

The post Woodside share price defies 3-month low in oil prices appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Woodside Energy share price slumping 6% today?
• How is the oil price plunge impacting ASX 200 oil shares today?
• What’s in store for the Woodside Energy share price in July?
• Santos and Woodside on watch after oil prices crash 10%

Motley Fool contributor Monica O’Shea 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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