Why did ASX 200 energy shares fire up on Tuesday?

Worker at a gas and oil pipeline.Worker at a gas and oil pipeline.

ASX 200 energy shares jumped today amid rising oil and gas prices.

Energy shares that finished in the green include Woodside Energy Group Ltd (ASX: WDS), Santos Ltd (ASX: STO), and Beach Energy Ltd (ASX: BPT).

So why did these ASX 200 energy shares have such a good day?

Rising oil and gas prices

Woodside and Santos shares jumped almost 3% while the Beach Energy share price gained just over 4%. These ASX 200 energy shares are major oil and gas producers.

On commodity markets, the West Texas International (WTI) crude oil price is up 1.26% while the Brent crude oil price is 1.37% higher, according to Bloomberg.

Natural gas prices are also up 1.17%.

Oil prices increased in US markets on Monday due to supply fears, Reuters reported. Commenting on the rise, UBS oil analyst Giovanni Staunovo told the publication:

A slightly weaker U.S. dollar and improving equity markets are supporting oil.

Meanwhile, gas prices also jumped amid supply concerns. Russian energy giant Gazprom said it would cut gas flows to Germany to 33 million cubic metres a day from Wednesday, Reuters reported.

This led to Ukraine President Volodymyr Zelenskiy to suggest the Kremlin is engaging in an “open gas war” against Europe.

Share price summary

Woodside shares have surged 44% in the year to date while Santos shares have gained 14%. Meanwhile, the Beach Energy price has increased 45% in the same time frame.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 28% in the year date.

The post Why did ASX 200 energy shares fire up on Tuesday? appeared first on The Motley Fool Australia.

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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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