Why is the Santos share price soaring 6% on Friday?

The Santos Ltd (ASX: STO) share price is surging today after oil and gas prices jumped ahead.

The Santos share price is rising 5.87% at the time of writing and is currently trading at $7.485. Meanwhile, the S&P ASX 200 Energy Index is also 3.89% in the green.

Let’s take a look at what could be impacting the Santos share price.

What’s going on?

Santos shares are rising today, but they are not alone. The Woodside Energy Group Ltd (ASX: WDS) share price is rising 4%, while Beach Energy Ltd (ASX: BPT) shares are lifting nearly 4%. The Carnarvon Energy Ltd (ASX: CVN) share price is rising 3% today.

This follows oil and gas prices lifting overnight. WTI futures jumped 2.7% to US$90.50 per barrel, while Brent Futures lifted 3.1% to US$96.59 a barrel in US markets.

Oil prices lifted amid prices strong economic data, Reuters reported.

OANDA senior market analyst Edward Moya said in comments cited by the publication:

Oil prices rallied after another round of impressive U.S. economic data boosted optimism for an improving crude demand outlook

Meanwhile, European natural gas futures also hit a record amid supply concerns, Bloomberg reported. Amid the European energy crisis, the benchmark contract lifted 6.7% to 241 euros per megawatt-hour.

Santos reported a 300% boost in underlying profit to US$1.27 billion in HY22. Statutory net profit also lifted 230%.

Meanwhile, in news today, Collins St Asset Management has become a substantial shareholder of Carnarvon Energy, with a 6.86% stake. Carnarvon is Santos’ joint venture partner for the Dorado oil and gas project in Western Australia. In half-year results this week, Santos revealed a final investment decision on the project will not be made in 2022 due to inflation pressures and supply chain challenges.

The post Why is the Santos share price soaring 6% on Friday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• Santos share price slips despite record profit and dividend boost
• Santos share price on watch after 300% first half profit growth
• 5 things to watch on the ASX 200 on Wednesday

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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