Why is the Woodside share price bouncing around today?

It’s turning out to be another positive day for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. But the Woodside Energy Group Ltd (ASX: WDS) share price is looking a lot more volatile.

At the time of writing, the ASX 200 has gained a healthy 0.56%, putting the index back over 6,800 points.

Woodside shares initially opened strongly this morning, rising just after open to $35.93 a share. But things quickly took a turn for the worse, with the company dropping to $35.38 soon after.

As it presently stands, Woodside Energy is still in the red, nursing a 0.22% loss at $35.53 a share.

So what could be going on here? Let’s check out what’s new with Woodside.

Woodside share price rises amid new carbon capture partnership

Well, there haven’t been any new ASX announcements from this ASX oil share today. However, the company did put out a media release yesterday that could be influencing sentiment.

This announcement gazetted a new strategic collaboration. Woodside declared that it has signed an agreement with the US-based carbon capture and storage company LanzaTech NZ Inc. Here’s what the company had to say:

Under the Strategic Framework Agreement Woodside will, in collaboration with LanzaTech and subject to a positive final investment decision, design, construct, own, maintain and operate pilot facilities relating to LanzaTech’s technologies.

The Strategic Framework Agreement also allows Woodside and LanzaTech to explore opportunities for the potential commercial scale–up of LanzaTech’s technology, which seeks to convert greenhouse gas emissions into new products.

Additionally, Woodside also announced that it would be investing US$50 million into the publicly listed AMCI Acquisition Corp. AMCI is expected to merge with LanzaTech, facilitating LanzaTech’s entrance onto the public markets.

Although these moves were announced yesterday, they could well be influencing the Woodside share price today.

But, as always, we can’t rule out that the moves of the oil price itself are also at play here. As an ASX energy share, the Woodside share price is easily influenced by how oil is being priced by the markets.

As my Fool colleague James covered this morning, oil had a weak session overnight on the US markets. Both WTI and Brent crude fell. WTI was down 0.3% to US$84.76 a barrel, while Brent dropped 0.1% to US$93.47. This could be why we are seeing some weakness in the Woodside share price this Tuesday.

But investors can’t be too upset. Woodside shares remain up a very pleasing 57% in 2022 thus far, and up 47% over the past 12 months.

At the current Woodside share price, this ASX 200 oil share has a market capitalisation of $67.5 billion, with a dividend yield of 8.61%.

The post Why is the Woodside share price bouncing around today? appeared first on The Motley Fool Australia.

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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.

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