Key points
- Wednesday was a crazy day for the Origin share price, lifting in morning trade before plunging to close 2.4% lower
- The dip came despite the energy sector outperforming the rest of the ASX 200
- While there’s no clear explanation for the stock’s struggles, it could be a simple correction after a strong few days’ performance
The Origin Energy Ltd (ASX: ORG) share price had a rollercoaster of a day on Wednesday.
It lifted to its 52-week record high in morning trade today before plunging to be the worst-performing S&P/ASX 200 Index (ASX: XJO) energy share.
As of Wednesday’s close, the Origin share price is $5.69, 2.57% lower than its previous close.
However, earlier today, it hit a high of $5.92 – representing a 1.3% gain and the highest it’s been in the last 12-months.
For context, the ASX 200 gained 1.17% on Wednesday, while the All Ordinaries Index (ASX: XAO) rose 1.19%.
Let’s take a closer look at what went on with the energy provider’s stock today.
What drove the Origin share price on Wednesday?
The Origin Energy share price ended today’s session as the worst-performing share on the best-performing sector.
That’s right, the S&P/ASX 200 Energy Index (ASX: XEJ) bested the rest today, gaining 2.84%.
While the Origin share price took up last place on the index, those of oil producers Worley Ltd (ASX: WOR), Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO), and Beach Energy Ltd (ASX: BPT) led.
Their gains were probably helped along by surging oil prices. As Reuters reported today, the OPEC+ is unlikely to increase supply of the black liquid despite prices nearing their highest point in seven years.
However, Origin’s slump might be a slight market correction after a particularly strong session yesterday.
On Tuesday, the energy provider’s shares rose 3.9% for no apparent reason. Not to mention, they gained 1.6% on Monday and 2.4% on Friday.
During its multi-day surge, the company released its report for the December quarter.
Within the report, the company announced its Australia Pacific LNG venture had seen its revenue increase 33% quarter-on-quarter. That meant it came out 91% higher than the previous comparable quarter.
It was boosted by higher oil prices, among other happenings. Thus, the Origin share price could have been rallying alongside the energy commodity until today.
The post Origin (ASX:ORG) share price hits 52-week high before slumping. What’s going on? appeared first on The Motley Fool Australia.
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More reading
- Origin (ASX:ORG) share price lifts amid APLNG’s 33% revenue boost
- Why are ASX 200 energy shares tumbling on Tuesday?
- Why AGL (ASX:AGL) and Origin (ASX:ORG) shares tumbled today
- The Origin (ASX:ORG) share price has hit 6 52-week highs in 2022. Here’s why
- Here’s why BlackRock plans to keep these carbon intensive ASX 200 shares
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 Bruce Jackson.
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