The Woodside Energy Group Ltd (ASX: WDS) share price is defying the marketâs tumble on Tuesday. Its strong performance follows a good night for oil prices.
Right now, the Woodside share price is $36.01. Thatâs 0.73% higher than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.59% so far today to trade at 7,091.9 points at the time of writing.
Letâs take a closer look at whatâs bolstering the Woodside share price above the marketâs fall today.
What’s going right for the Woodside share price today?
The Woodside share price is outperforming alongside many of its oil-producing peers today.
The stock is one of many driving the S&P/ASX 200 Energy Index (ASX: XEJ) to trade in the green, defying the marketâs downturn. The energy sector is currently up 0.46% â making it the ASX 200’s best-performing sector so far today.
Its gain follows a strong nightâs trade for oil. The Brent crude oil price rose 1% to US$79.80 a barrel overnight while the US Nymex crude oil price gained 1.2% to US$75.19 a barrel.
The black liquidâs value lifted amid rising hopes China might relax its COVID-19 restrictions, thereby likely increasing demand for the energy commodity, Reuters reports.
Its gains also come despite concerns the United States could fall into a recession after the nationâs Federal Reserve continued to battle rampant inflation with back-to-back rate hikes last week.
A rise in oil prices tends to drive Woodside’s stock higher. That’s because much of the companyâs earnings depend on the commodityâs value. The higher the oil price, the more cash the oil producer can bring in.
Joining Woodside in the green today is the Santos Ltd (ASX: STO) share price. It’s gained 0.35% at the time of writing.
Meanwhile, fellow oil stock Beach Energy Ltd (ASX: BPT) is suffering alongside the market, falling 0.62%.
The post Why is the Woodside share price smashing the ASX 200 on Tuesday? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Tuesday
- Here are the top 10 ASX 200 shares today
- Here are the 3 most heavily traded ASX 200 shares on Monday
- Invest, or not to invest in ASX shares: Why I think the pessimists are wrong again
- Is the Pinnacle share price the ASX 200’s biggest bargain right now?
Motley Fool contributor Brooke Cooper 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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