Why is the Santos share price beating the ASX 200 on Friday?

Young boy in business suit punches the air as he finishes ahead of another boy in a box car race.Young boy in business suit punches the air as he finishes ahead of another boy in a box car race.

It’s been a pretty decent end to the trading week so far this Friday for the S&P/ASX 200 Index (ASX: XJO). The ASX 200 has added a healthy 0.82% so far today to 6,946 points. But the Santos Ltd (ASX: STO) share price is doing even better.

Santos shares are currently up an index-beating 1.10% at $7.32 a share. That comes after this ASX 200 energy share rose as high as $7.44 in earlier trading, a rise worth more than 2% at the time.

So how is Santos managing to be an ASX 200 winner today?

Well, since Santos is an ASX oil share, our first port of call should be the crude oil price itself. According to Bloomberg, oil prices have been rising for the last few days. Back on 26 July, the price of West Texas Intermediate (WTI) crude futures was US$94.98 a barrel.

But, at the time of writing, these WTI futures are now going for US$96.69 a barrel. So there has been a definite uptick in the value of crude oil over the past few days.

This could be behind the strong performance of the Santos share price this Friday.

Santos and ASX energy shares rise on higher oil price

But it’s not just Santos shares that are enjoying a day in the sun today.

Take the Woodside Energy Group Ltd (ASX: WDS) share price. Woodside is the largest energy share on the ASX 200. Its shares are also up today, having risen by 0.88% to $32.10 each.

Looking at the Beach Energy Ltd (ASX: BPT) share price and we see a similar pattern. Beach has risen by 1.39% so far today to $1.82 a share.

So we are seeing some fairly consistent moves in the ASX oil shares space, which points to an industry-wide trend. As such, we can conclude that it is probably the strength in the oil price itself which is largely responsible for the outperformance of the Santos share price so far today.

At the current Santos share price, this ASX 200 energy share has a market capitalisation of $24.61 billion, with a dividend yield of 2.66%.

The post Why is the Santos share price beating the ASX 200 on Friday? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/D8E2ab4

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s