Why is the Santos share price outperforming the ASX 200 today

The Santos Ltd (ASX: STO) share price is having a top run on Friday.

Santos shares are 4.62% in the green and currently trading at $7.815. For perspective, the S&P/ASX 200 (ASX: XJO) is up 1.88% today.

Let’s take a look at why the Santos share price is rising today.

Oil prices storm higher

Santos is a major oil and gas producer. The Woodside Energy Group Ltd (ASX: WDS) share price is also up 4% today, while Beach Energy Ltd (ASX: BPT) shares are soaring 5.76%. The S&P/ASX 200 Energy Index (ASX: XEJ) is 4% in the green.

Energy shares including Santos are rising after oil prices lifted overnight.

Brent crude oil jumped 2.29% to $94.57 a barrel. US Energy Information data revealed distillate stockpiles including heating oil fell by 4.9 million barrels a day in the week ending 7 October, Reuters reported. Price Futures Group analyst Phil Flynn, quoted by the publication, said:

The most disturbing part of the (EIA) report is that distilling inventories are so far below average.

The market is looking at the big picture, as opposed to the short-term demand numbers that were impacted by the storm.

Meanwhile European natural gas swung widely overnight following a hoax threat to the Norwegian Ormen Lange natural gas field. However, benchmark futures dropped 4% after grid operator Shell Plc clarified there was no disruption to gas transport, Bloomberg reported. Oxford Institute for Energy Studies senior research fellow Katja Yafimava told the publication:

Any incident — serious or not so serious — that could potentially result in disruption of either production or transport facilities used for supplies of non-Russian gas to Europe is bound to make the market more and more nervous.

Volatility is the new normal.

Santos share price snapshot

The Santos share price has gained 6% in the past year, while it is soaring 24% year to date.

For perspective, the ASX 200 has shed 7% in the past year.

Santos has a market capitalisation of more than $26 billion based on the current share price.

The post Why is the Santos share price outperforming the ASX 200 today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why Baby Bunting, Block, Fortescue, and Santos shares are dropping
• Why is the Woodside share price suffering on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday
• Up 14% in 2 weeks, has the Santos share price reached its top?

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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