The Woodside Energy Group Ltd (ASX: WDS) share price was a big beneficiary of rocketing oil prices into the first half of 2022.
On 8 June last year, Brent crude oil topped US$123 per barrel.
By 10 June, the Woodside share price was up 59% for the year.
As youâd expect, shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas company have since come under some pressure as the oil price retraced, particularly over the past weeks.
On 6 March 2023, Brent was fetching US$86.18 per barrel.
Yesterday that same barrel was trading for US$72.78, down 15.5%.
With energy prices tanking, the Woodside share price dropped 17.4% from 7 March through to yesterdayâs close.
Whatâs next for the Woodside share price?
There are a range of factors that will impact the performance and returns Woodside offers to investors.
But clearly, the price of oil has a big influence. You need look no further than todayâs market action to see what I mean.
At the time of writing, Brent crude is trading for US$74.73, according to Bloomberg data. Thatâs up 2.7% overnight.
As for the Woodside share price? Itâs up 1.42% in late morning trade to $31.53 per share.
So what can ASX 200 energy investors expect next?
Digging into oil price forecasts, hereâs what I wrote yesterday:
For investors with a medium-term horizon of at least a year or so, I believe both the Santos and Woodside share prices will trade significantly higher inside the next 12 months than where theyâre at today.
Well, we didnât have to wait nearly that long!
Buy the dip and bargain hunters snapping up shares this morning have been rewarded for wading in.
And I believe there could be significantly more gains ahead for the Woodside share price before the end of the year.
What do the experts say?
A number of prominent analysts have forecast a sharp increase in oil prices over the latter half of 2023.
Citing a dearth of new investments in exploration and production, analysts at Goldman Sachs forecast crude oil will be trading back at US$100 per barrel.
âThe commodity super cycle is a sequence of price spikes with each high higher, and each low higher,â Goldman Sachs analyst Jeff Currie said in February.
The Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) also believe oil prices will move higher in H2, fuelled by increasing demand from China as the nation continues to reopen.
CBA mining and energy analyst Vivek Dhar isnât quite as bullish as Goldmanâs analysts but still expects the Brent oil price will increase to US$88 per barrel in the latter half of 2023.
âWe see deficit risks rising in H2 2023, as global oil supply growth, driven mainly by US, Norway and Brazil, fails to keep up with global oil demand growth,â he said.
How has the ASX 200 oil stock been performing?
As you can see in the graph below, the Woodside share price has struggled so far in 2023, down 11%. Over the past 12 months, the ASX 200 energy stock has gained 4%.
The post With oil below $75 per barrel, whatâs next for the Woodside share price? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Friday
- ASX 200 oil stocks are tanking. Is now the time to buy?
- Why Bendigo and Adelaide Bank, BHP, IPH, and Woodside shares are dropping
- Why is the Woodside share price sinking today?
- Why 29Metals, Eagers Automotive, Northern Star, and Woodside shares are dropping today
Motley Fool contributor Bernd Struben 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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