There’s some weird stuff going on in the world of cryptocurrencies at the moment.

The company that develops Terra (CRYPTO: LUNA) and TerraUSD (CRYPTO: UST) announced that it would buy up US$10 billion ($13 billion) of Bitcoin (CRYPTO: BTC).

Why is Terraform Labs doing this?

First we need to dig into the mechanism behind Terra and TerraUSD.

Creation of TerraUSD pushes up Terra’s value

According to Coinjar head of content Luke Ryan, investors have been stepping over each other to get their hands on TerraUSD because of a guarantee of 20% returns from the decentralised finance (defi) platform Anchor Protocol.

A yield of 20% is understandably tempting to investors who can only reap near-zero from bank deposits and maybe 5% from shares if they’re lucky.

But how do you get your hands on TerraUSD? 

It needs to be converted from Terra. For each TerraUSD created, one Terra is burned.

“Right now people are minting a huge amount of UST in order to take advantage of Anchor’s almost definitely unsustainable 20% returns,” Ryan said on the Coinjar blog.

“The UST supply has gone from US$2bn to almost US$16bn since November, resulting in the destruction of hundreds of millions of LUNA tokens – and a corresponding uptick in the LUNA price.”

Indeed, Terra has doubled in value since late February.

“Since November (i.e. the start of the bear market), the amount of UST in circulation has gone up 800% and is still increasing by roughly US$100 million per day. At US$16 billion, UST is almost twice as large as Dai (CRYPTO: DAI), the second largest algorithmic stablecoin.”

What if this money-making system fails?

That’s all fantastic for owners of Terra and TerraUSD. But can this party last forever?

That’s where the massive purchase of Bitcoin comes in.

“Let’s imagine a mass panic event — say, a large-scale exploit of ANC,” said Ryan.

“Overnight, billions of UST are redeemed for LUNA. To prevent the wholesale collapse of the ecosystem, Terra sells an equivalent amount of BTC instead.”

In other words, Terraform Labs co-founder and chief executive Do Kwon is spreading the risk of the Terra-TerraUSD-Anchor relationship.

“Functionally it’s not that different from the reserve requirement that all banks are subject to,” Ryan said. 

“The Bitcoin treasury exists to cushion a bank run that could otherwise cause a LUNA-UST death spiral.”

TerraUSD is currently in hot demand because of its 20% yield. But if the Anchor Protocol ever decides to end or even reduce that return, mass withdrawals are not out of the question.

That’s where the reserve Bitcoin will come into play, to stabilise the value of Terra.

The post Another crypto is buying $13 billion of Bitcoin. Here’s why appeared first on The Motley Fool Australia.

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• Here’s what ESG investors should know about cryptos like Bitcoin
• Mining Bitcoin is 3.5 times more expensive than digging up gold
• Bitcoin is up 25% in 10 days. Here’s what it’ll do now
• The Bitcoin price just reached a new 2022 high. Here’s why

Motley Fool contributor Tony Yoo owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. 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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Despite a small blip late on in the week, the S&P/ASX 200 Index (ASX: XJO) managed to record its third consecutive weekly gain. The benchmark index rose 1.2% over the period to end it at 7,493.8 points.

While a good number of shares climbed with the market, some rose more than most. Here’s why these were the best performers on the ASX 200 last week:

Novonix Ltd (ASX: NVX)

The Novonix share price was the best performer on the ASX 200 last week with a 16.1% gain over the five days. This was despite there being no news out of the battery materials and technology company. Though, with its shares still down 40% year to date even after this gain, some investors may believe they have been oversold.

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price wasn’t far behind with a gain of 14% last week. This appears to have been driven partly by rising lithium prices. At the end of the week, Allkem Ltd (ASX: AKE) revealed that it expects lithium carbonate pricing of approximately US$35,000 per tonne FOB for the June quarter. This is up from US$27,236 per tonne during the March quarter and is more than triple the US$11,095 per tonne it received during the first half.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price was a strong performer and charged 12.1% higher over the period. As the mining and mining services company has exposure to both iron ore and lithium, strong pricing for both appears to have given its shares a boost. In addition, there was a positive update relating to the Lockyer Deep-1 well, which led to Macquarie retaining its outperform rating and lofty $77.00 price target on the company’s shares.

Life360 Inc (ASX: 360)

The Life360 share price was on form and charged 10% higher last week. This follows a rebound in the tech sector which was strongest among loss-making shares that were hit hardest following the selloff earlier this year. The Life360 share price remains down 40% in 2022 despite this strong gain.

The post These were the best performers on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX growth shares brokers rate as buys
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• These were the best performing ASX 200 shares in March
• The US is backing Aussie critical minerals projects, and these ASX mining shares could be set to reap the rewards
• The ASX 200 just had its longest winning streak since 2017. What’s doing?

Motley Fool contributor James Mickleboro owns Life360, Inc. and Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended Macquarie Group Limited. 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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The Fortescue Metals Group Limited (ASX: FMG) share price performed better than the S&P/ASX 200 Index (ASX: XJO) in March 2022.

Last month, the Fortescue share price rose by 13.8%. That compares to the ASX 200’s return of 6.4%. Fortescue’s return was more than double that of the ASX 200.

What could have helped the Fortescue share price?

Fortescue is one of the world’s biggest iron ore miners. Changes in the iron ore price can impact investor sentiment regarding the miner.

During March, the iron ore price rose by approximately US$10 per tonne. This can lead to higher profits for miners because a change in the commodity price doesn’t change the costs to extract it from the ground, so higher prices can largely add to the bottom line.

The recent Fortescue FY22 half-year result disclosed that its average revenue per dry metric tonne fell by 16% to US$95.58 per tonne, which led to the net profit after tax (NPAT) falling 32% to US$2.8 billion.

Green hydrogen progress continues

However, Fortescue isn’t just an iron ore miner anymore.

It has a division called Fortescue Future Industries (FFI), which is aiming to take a global leadership position in green energy and green technology, leading the effort to decarbonise sectors that are hard to decarbonise.

FFI is investing in creating a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030.

FFI recently announced it would be working with E.ON, one of Europe’s largest operators of energy networks and energy infrastructure. E.ON has 50 million customers.

Fortescue and E.ON are partnering to deliver up to five million tonnes per annum of green hydrogen to Europe by 2030.

Fortescue didn’t say this announcement was market sensitive for the Fortescue share price. But, the company did make an announcement to clarify the “$50 billion expenditure” that founder Dr Andrew Forrest referred to in order to make this a reality was only a “high-level assessment”.

Fortescue has only committed 10% of its net profit after tax to FFI, which was around US$1 billion in FY21.

Both partners have signed a memorandum of understanding to execute this ambition, with binding elements between the parties to deliver on this mission. Each side has committed to a research and study partnership.

FFI said:

This historic partnership marks E.ON’s and FFI’s broader ambition to lead the decarbonisation of Europe and to strengthen security of green energy supply at a time when Europe needs to reduce its energy dependence on fossil fuels from Russia as quickly as possible. Five million tonnes per annum of renewable green hydrogen is equal to approximately one third of the calorific energy Germany imports from Russia.

FFI said it intends for this large amount of renewable green hydrogen to be powered by Australia’s “immense” renewable resources as well as its other planned global projects, which will be distributed by E.ON. The two partners have also agreed to work together to analyse what solutions could look like to solve infrastructure issues and build a secure value chain.

The post The Fortescue share price doubled the return of the ASX 200 in March appeared first on The Motley Fool Australia.

More reading

• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• Fortescue share price jumps 4% higher
• Are these ASX 200 mining shares in trouble?
• The Fortescue dividend was paid today. Here’s the lowdown
• Fortescue Future Industries just inked a multibillion-dollar green hydrogen deal in Germany. Here’s the lowdown

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. 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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Are you interested in adding some more ASX shares to your portfolio?

Two ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is a printed circuit board (PCB) design software provider which could be a top option due to its leading position in a market exposed to the Internet of Things and artificial intelligence.

PCBs are found in almost all electronic devices. As such, the proliferation of electronic devices due to the Internet of Things and artificial intelligence markets is expected to lead to increasing demand for its software over the next decade.

Bell Potter is positive on Altium and currently has a buy rating and $38.75 price target on its shares.

The broker has been pleased with Altium’s shift to subscriptions and still sees the company as a potential takeover target. In respect to the latter, it said: “Altium has already received an unsolicited takeover offer from Autodesk at $38.50 which was rejected. Our view is Autodesk’s Fusion 360 platform is lacking a high powered ECAD offering so we believe Autodesk would still be very interested in Altium and may come back with a revised offer.”

Life360 Inc (ASX: 360)

Another ASX growth share to look at is Life360. This growing technology company is responsible for the Life360 mobile app, which is a market leading app for families.

It offers features such as communications, driver safety, and location sharing. As of its last update, the company’s user base had grown to over 30 million globally. This is generating significant recurring revenue and opens the door to material cross and upselling opportunities for its recently acquired businesses.

Bell Potter is also bullish on LIfe360’s future. It currently has a buy rating and $10.00 price target on its shares.

The broker believes the recent selloff of its shares has created a buying opportunity. It said: “[Life360] remains a key pick and we believe has been oversold as, despite currently being loss making, has ample cash to fund it through to cash flow breakeven or positive in 2023 or 2024 while maintaining strong top line revenue growth and realising the synergy benefits from the recent Tile acquisition.”

The post 2 excellent ASX growth shares brokers rate as buys appeared first on The Motley Fool Australia.

More reading

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• 3 beaten-down technology ASX shares to buy right now: expert
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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium and Life360, Inc. 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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Whitehaven Coal Ltd (ASX: WHC) is among many ASX energy shares enjoying a strong run in 2022 due to interrupted global supply chains and the impact of the Russian invasion of Ukraine.

The S&P/ASX 200 Energy Index (ASX: XEJ) is up by almost 22% year to date. The Whitehaven Coal share price has outperformed the index by a mile, up by 51% over the same timeframe.

Fellow ASX energy shares that have picked up major ground in 2022 include Woodside Petroleum Limited (ASX: WPL), up 43%, and Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) — both up by 19%.

Today, the Whitehaven Coal share price finished up 0.48% to $4.17 amid news that the NSW Independent Planning Commission has conditionally approved expansion plans for one of the company’s mines.

Narrabri mine expansion

The Narrabri Mine, located in the NSW north-west, is Whitehaven Coal’s only underground mine. It has been operating since 2012. It employs 500 people, mainly local residents. Whitehaven Coal has previously received approval to dig up 11 million tonnes of high-quality thermal coal per annum until 2031.

Now, Whitehaven Coal wants to extend the mine. In early 2021, the NSW Department of Planning and Environment commenced a whole-of-government assessment of the project. The department concluded its review in January and recommended approval for the expansion. However, the state’s planning minister asked the commission to conduct a public hearing before making a final decision on their behalf.

The expansion involves extending longwall operations to the south of the mine and extracting an extra 82 million tonnes of coal. Dubbed the Stage 3 Extension Project, it will extend the life of the mine to 2044.

Today, a commission panel announced it has given consent but is imposing 152 conditions. These include performance measures to reduce the intensity of Scope 1 and Scope 2 greenhouse gas emissions.

Whitehaven Coal will also have to complete an Emissions Minimisation Plan. The plan will investigate and implement innovative, economically-feasible ways to further cut Scope 1 emissions through technology.

Why the expansion got approved

In its Statement of Reasons for Decision, the commission said the approval was partly “in recognition of the importance of the continuation of the extraction and exportation of coal to the NSW economy”.

The commission said:

The community raised concerns in submissions … regarding subsidence, water, greenhouse gas emissions, biodiversity, noise and Aboriginal cultural heritage. The Commission also received submissions in support of the Application, citing its positive social and economic benefits through the provision of employment for the local area and region.

The Commission finds that, on balance, the Project would achieve an appropriate balance between relevant environmental, economic and social considerations.

What else is happening at Whitehaven?

Whitehaven Coal updated the market today on its buyback of up to 10% of its shares.

Whitehaven said: “… The company’s on market share buy-back of up to 10% of shares and capped
at $400 million over a twelve-month period is progressing well. The Company is currently in a blackout period ahead of the release of its March Quarter Production Report scheduled for 20 April, after which Whitehaven’s share buy-back activities are able to re-commence.”

Whitehaven Coal began purchasing its own shares on 8 March. It spent $67 million acquiring 16.8 million shares over the month. This represents 16% of the maximum 103 million shares that it may acquire.

Whitehaven Coal share price snapshot

Whitehaven Coal shares are up 134% on the ASX over the past 12 months. For perspective, the S&P/ASX 200 Index (ASX: XJO) has risen by 8.8% over the same timeframe.

The post What boosted the Whitehaven Coal (ASX:WHC) share price on Friday? appeared first on The Motley Fool Australia.

More reading

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• These were the worst performing ASX 200 shares in March

Motley Fool contributor Bronwyn Allen owns Woodside Petroleum Ltd. 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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The Zip Co Ltd (ASX: Z1P) share price was trading lower today ahead of the closure of its share purchase plan (SPP).

At Friday’s close of trade, the buy now, pay later (BNPL) provider’s shares were down 1.01%, trading at $1.47.

All the important details regarding the SPP

Investors sent the Zip share price in negative territory through the day as time dwindled to be a part of the company’s SPP.

On 11 March, Zip advised it had opened its $50 million SPP to eligible shareholders. This followed the company’s successful completion of a $148.7 million institutional placement from an array of institutional, sophisticated and professional investors.

The SPP offers retail shareholders the chance to subscribe for up to $30,000 worth of new Zip shares.

Furthermore, the issue price is likely to be a 2% discount on the five-day volume-weighted average price to today.

While this may seem attractive as it is considerably lower than the $1.90 per share taken up in the institutional placement, Zip shares have been on a decline.

Over the month, the company’s shares have fallen 33% in value, trading near March 2020 lows when the COVID-19 pandemic hit.

Zip previously noted that the proceeds of the placement and SPP would go towards strengthening its balance sheet.

In addition, it is also looking to shore up funds to execute on the potential synergies from the upcoming transaction. This relates to the $491 million all-scrip acquisition of Sezzle Inc (ASX: SZL).

Zip is expected announce the SPP results on Wednesday 6 April.

Settlement and allotment of the new shares will occur on 8 April, with normal trading commencing on Monday 11 April.

About the Zip share price

Despite making strides to grow organically, the Zip share price has fallen more than 80% in the last 12 months, with a 65% drop since the start of 2022.

Zip commands a market capitalisation of around $985.18 million based on today’s share price.

The post Zip share price backtracks ahead of share purchase plan closure appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares in March
• The Zip share purchase plan closes tomorrow. Here’s what you need to know
• Could the Zip share price turn over a new leaf in April?
• Why is the Zip share price launching 7% on Tuesday?
• Guess how many cents now separate the Zip share price from its market-crash low

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price was a positive performer in March.

Over the period, the banking giant’s shares rose by a sizeable 6.1%.

Why did the ANZ share price storm higher in March?

The catalyst for the rise in the ANZ share price last month was commentary out of both the US Federal Reserve and the Reserve Bank of Australia.

Hawkish comments from both central banks have sparked hopes that interest rates could be rising quicker than previously expected to combat rising inflation.

This would be good news for ANZ and the rest of the banks as it would be a boost to their interest income, which has been under significant pressure with rates close to zero.

Can its shares go higher?

The good news is that one leading broker still sees value in the ANZ share price even after its solid gain in March.

A recent note out of Goldman Sachs reveals that its analysts have a buy rating and $30.84 price target on the bank’s shares.

Based on the current ANZ share price of $27.18, this implies potential upside of 13.5% for investors over the next 12 months.

In addition, the broker is expecting fully franked dividend yields of ~5.4% and ~5.7% in FY 2022 and FY 2023, respectively. This increases its potential 12-month total return to approximately 19%.

Goldman commented: “Despite the weak [Q1] update we stay Buy rated on ANZ given i) ANZ appears to be on track to reach its FY23 cost target of A$8 bn, which should alleviate some of its revenue pressures, ii) ANZ is making progress to improve systems and processes for simple home loans with application times now in line with major bank peers, iii) ANZ is considering increasing the size of the current on-market buy-back ($1.5 billion announced in Jul-21), and iv) the stock is trading more than one standard deviation cheaper versus the sector on PPOP multiples.”

The post Here’s how the ANZ share price performed in March appeared first on The Motley Fool Australia.

More reading

• How did ASX 200 bank shares perform today?
• What’s the outlook for the ANZ share price in April?
• What is the current dividend yield on ANZ shares?
• Is the new ANZ digital offering all it’s cracked up to be?
• Own ANZ shares? The ASX 200 bank just became the first to launch its own crypto

Motley Fool contributor James Mickleboro 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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Friday has proven to be a good day for mining and resources shares, with five ASX miners – three of which are in the S&P/ASX 200 Index (ASX: XJO) – recording all-time highs.

Interestingly, all the mining stocks breaking milestone records were lithium miners, and for good reason. Positive news of the commodity’s value hit the ASX this morning.

At the close of trade, the S&P/ASX 200 Resources Index (ASX: XJR) was up 1.52%, while the ASX 200 fell 0.08%.

So, what’s boosted these ASX 200 mining shares to never-before-seen heights on Friday? Let’s take a look.

5 ASX mining shares reaching new heights on Friday

Allkem Ltd (ASX: AKE)

Let’s start with the Allkem share price’s movements today.

The company is both the only miner on this list to have released news on Friday and the likely source of many ASX lithium stocks’ gains.

The Allkem share price launched 8.9% to a new record high of $12.45 in intraday trade, before closing up 8.49% at $12.40.

Its gains came after the company released its lithium carbonate and spodumene pricing forecast for the June quarter.  

It expects lithium prices to continue rising this quarter after prices in March beat its previous forecast by 9% to reach roughly US$27,236 a tonne free on board.

According to Allkem, lithium prices could surge to approximately $US35,000 per tonne free on board this quarter.

It’s predicting similar increases to spodumene prices, with prices expected to reach US$5,000 a tonne on sales of around 50,000 tonnes.

During the March quarter, such sales were going for approximately US$2,218 per tonne, including tonnes that were delayed from the December quarter.

Lake Resources N.L. (ASX: LKE)

Of course, Allkem’s bullish lithium outlook likely boosted sentiment in other ASX lithium mining shares.

The Lake Resources share price shot 15.79% higher to trade at a new all-time high of $2.31 in afternoon trade.

AVZ Minerals Ltd (ASX: AVZ)

Similarly, the AVZ Minerals share price rocketed to a record high of $1.31 on Friday.

That represented a 5.6% increase on its previous closing price.

At its new highest point, the company’s stock was trading for a whopping 589% more than it was this time last year. It closed at $1.30.

Core Lithium Ltd (ASX: CXO)

And, dear reader, you guessed it – the next ASX mining share on this list of record breakers is also a lithium stock.

The Core Lithium share price closed at a new all-time high of $1.535 on Friday, launching 11.64% to get there.

It marks the second day in a row the company’s stock has recorded a strong gain.

It surged 8.7% yesterday on the back of news of its Finniss lithium project, under development near Darwin.

IGO Ltd (ASX: IGO)

The final ASX mining share making this list has plenty of interests in lithium. Though, it is also focused on other green metals.

The IGO share price surpassed its all-time high to trade at $14.49 in intraday trade on Friday. That represents a 3% gain on its previous close.

However, it later retreated to end the day up 2.49% at $14.41.

The post 5 ASX mining shares rocking all-time highs on Friday appeared first on The Motley Fool Australia.

More reading

• Why Allkem, Argosy Minerals, Firefinch, and Tabcorp shares are charging higher
• Allkem (ASX:AKE) share price leaps 6% following lithium pricing update
• ASX 200 (ASX:XJO) midday update: Allkem jumps on lithium pricing update: Domain to acquire Realbase
• Why is the Lake Resources (ASX:LKE) share price surging 16% higher to a new record high?
• These were the best performing ASX 200 shares in March

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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The Betmakers Technology Group Ltd (ASX: BET) share price is sliding 2% lower on Friday and is currently at 62 cents.

The downfall extends this year’s loss for the company, with shares tanking more than 22% since trading restarted in January.

Just in the last week, they have slipped 9% into the red.

What’s up with Betmakers?

The Betmakers share price had been on a gradual glide towards the landing strip since October last year. Over that time, it has tumbled from a high of $1.23 with no obvious signs of recovery along the way.

Selling pressure only continued when Betmakers released its FY22 half-year earnings last month, in which the company recorded a loss after tax of $27.8 million, far worse than the $4.4 million the previous year.

Excluding non-cash items like depreciation, the loss still amounted to almost $23 million, whereas net tangible assets climbed to $137.6 million.

This is despite a 473% jump in revenue to $43.5 million for the year. However, Betmakers also diluted its share count from 601.5 million shares to almost 858 million shares during the period.

Investors punished the company after its results, sending the Betmakers share price tumbling by 6%.

They’ve yet to make a recovery and have been trading in a narrow sideways channel since.

Betmakers share price snapshot

In the last 12 months the Betmakers share price has lost 45% and is down 22% this year to date.

However, it has gained almost 11% over the past month.

The post Why is the Betmakers (ASX:BET) share price having such a lousy week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. 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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The Woodside Petroleum Limited (ASX: WPL) share price touched a fresh 52-week high of $34.60 in early March.

Although some gains have been given back since, the energy giant’s shares are currently trading at $32.57, up 1.48% on the day.

It’s worth noting that Woodside shares surged 12.47% last month, buoyed by positive investor sentiment in the sector.

Let’s take a look at why the company’s shares have been a winner lately.

What’s been elevating Woodside?

The price of oil has soared in recent times following the militarily conflict between Russia and Ukraine.

The United States and its allies slapped harsh sanctions on Russia over the invasion, targeting its oil and gas sector. Cutting off an important player and member of the Organisation of Petroleum Exporting Countries (OPEC) sent shockwaves through energy markets.

Currently, Brent crude, considered as the benchmark for oil prices, is fetching US$104.51 per barrel. This reflects an increase of about 13.2% since the invasion began on 24 February.

With the price of oil skyrocketing, this undoubtedly leads to bumper revenues for Woodside and other ASX energy shares alike.

In contrast, the S&P/ASX 200 Energy Index (ASX: XEJ) climbed almost 10% during March.

However, this may be short-lived following US President Joe Biden’s decision overnight to release much-needed oil to global markets.

As such, one million barrels of oil are set to be released each day from the United States strategic petroleum reserve. This will run over a course of six months which would equate to 180 million barrels of oil.

Even though this is the largest release ever in the history of the United States, it may not be significant enough. This is because the 180 million barrels of oil represents just two days of global demand for the crucial commodity.

Pleasingly for Australian oil and gas producers, this could lead to export opportunities to fill the energy gap. Particularly at current prices, Woodside could stand to benefit from this turmoil.

Woodside share price summary

The Woodside share price has gained 35% over the last 12 months, and is up almost 50% in 2022.

Based on today’s price, Woodside commands a market capitalisation of roughly $32.04 billion, with approximately 983.98 million shares on issue.

The post The Woodside share price gained 12% in March. Here’s why appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• What’s dragging on ASX 200 energy shares today?
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Motley Fool contributor Aaron Teboneras 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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