Why is the Woodside share price beating the ASX 200 on Wednesday?

The Woodside Energy Group Ltd (ASX: WDS) share price is smashing the ASX 200 on Wednesday despite no announcements from the company.

At the time of writing, the energy producer’s shares are climbing to $31.76, up 3.55%.

For context, the S&P/ASX 200 Index (ASX: XJO) opened up in the red but has now pushed into positive territory, up 0.14%.

Let’s take a look at what’s driving Woodside shares higher today.

Why are Woodside shares roaring higher?

Investors are bidding up the Woodside share price following a broader lift across the S&P/ASX 200 Energy Index (ASX: XEJ) today.

The benchmark index comprising 11 companies that operate in the oil, gas and coal sector is up 2.88%.

This makes it the best performing sector on the ASX by a long shot. The next highest is the S&P/ASX 200 Resources Index (ASX: XJR), up 1.72%.

Oil prices rose overnight on the back of rumours that OPEC+ could cut output targets by 1 million barrels per day.

The cartel is due to meet on 5 October.

OPEC meetings are attended by representatives from 13 oil-rich nations and are responsible for 40% of the world’s oil supply.

Given the recent oil price decline, any halt to production would drive energy prices possibly above US$100 a barrel.

The oil market is extremely tight, with demand continuing to accelerate as the world faces an energy crisis.

Currently, the West Texas Intermediate (WTI) is fetching at $78.30 a barrel.

If oil prices head higher, this will evidently see Woodside continue to produce bumper margins along with its peers.

Shares in fellow rival, Santos Ltd (ASX: STO) also powering ahead for the day, up 1.29% to $7.04.

Woodside share price summary

It’s been a rollercoaster 12 months for the Woodside share price despite recording a 32% gain for the period.

The company’s shares reached a 52-week high of $36.68 on 26 August before tumbling 20% in the following weeks.

Since then, the share has risen on the back of an uptick in gasoline prices.

Woodside presides a market capitalisation of approximately $58.23 billion, making it the biggest energy company on the ASX.

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

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Woodside share price rebounds as energy stocks surge on Tuesday
• Why is the Woodside share price tumbling 5% on Monday?
• 5 things to watch on the ASX 200 on Monday
• 2 surprising ASX shares to buy for the energy transition: Wilsons

Motley Fool contributor Aaron Teboneras 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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