The Talga Group Ltd (ASX: TLG) share price has been storming higher on Thursday morning.

At the time of writing, the graphite producer’s shares are up 9% to $1.50.

Why is the Talga share price storming higher?

Investors have been bidding the Talga share price higher today following the release of an update on drilling activities at its Vittangi Graphite Project in northern Sweden.

According to the release, the final results from its drilling activities have returned world-class grades, which management believes paves the way to upgrade Europe’s largest natural graphite resource for Li-ion batteries. A revision of the Vittangi JORC mineral resource has now commenced.

What is Talga planning?

The release highlights that Talga is building a vertically integrated operation to supply green natural graphite anode products to Li-ion battery manufacturers and automotive OEM customers.

This is a great spot to be in, as by 2031 Europe is forecast to require 1 million tonnes anode per annum (tpa), whilst global demand is projected to reach >8.3 million tpa.

Furthermore, Talga already has relationships with many of the companies that will be making up this sizeable demand. Management notes that its anode products are being trialled by more than 40 customers whose capacity roadmaps underscore the enormity of demand, globally and in Europe.

Talga’s Managing Director, Mark Thompson, was pleased with the results.

He said: “With the commissioning of our Electric Vehicle Anode plant (EVA) underway Talga is well advanced in its plans for vertically integrated anode production in Europe. The consistent high grades from recent drilling at Vittangi are outstanding, and our world-class Swedish natural graphite deposits clearly have room for significant further growth. We are pleased to commence upgrading the scale of resources to match fast growing global demand for cleaner, secure battery supply chains.”

The post Here’s why this ASX graphite share just leapt 9% appeared first on The Motley Fool Australia.

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• Here’s why the Global Lithium (ASX:GL1) share price is soaring 18% today
• Here’s why the Woolworths (ASX:WOW) share price is sliding today
• Better buy: Apple or all 30 Dow Jones stocks?
• Here are 4 ASX shares insiders are putting their money behind
• Bubs (ASX:BUB) share price higher on daigou deal

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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The Global Lithium Resources Ltd (ASX: GL1) share price is off to the races today.

The ASX lithium share is currently trading for $1.765 per share, up 18.46% from this morning’s opening price of $1.49.

Below we take a look at the offtake agreement that looks to be spurring ASX investor interest.

What offtake agreement was announced?

The Global Lithium share price is soaring after the company reported it’s entered into a 10-year spodumene concentrate offtake agreement with Suzhou TA&A Ultra Clean Technology Co.

Suzhou TA&A, the largest Global Lithium shareholder, will also provide technical support services as needed.

As per the agreement, Suzhou TA&A will acquire and take delivery of a least 30% of available product from Global Lithium’s operations. Suzhou TA&A could increase that quantity by up to an additional 15% in each contract year.

The company said prices for its spodumene concentrate (a lithium ore mineral) will be based on recognised market prices.

Commenting on the agreement boosting the Global Lithium share price today, non-executive chair Warrick Hazeldine said:

As Global Lithium continues to advance our significant West Australian lithium portfolio, having the continued support of a world leader like Suzhou TA&A is truly an exceptional vote of confidence in our company, our people and our assets.

Having joined our register in December 2021 as a cornerstone investor, Suzhou TA&A has provided tremendous support in not only maintaining their 9.4% stake but also providing invaluable introductions and assistance, which has led us to signing this Strategic Offtake Agreement.

The agreement remains subject to the approval of both company’s boards.

Global Lithium share price snapshot

With today’s intraday gains factored in, the Global Lithium share price is up 56% year-to-date.

But that’s nothing compared to the 538% gains in Global Lithium’s shares since the company listed on the ASX on 6 May last year.

To put that into context, the All Ordinaries Index (ASX: XAO) has gained 2% over that same period.

The post Here’s why the Global Lithium (ASX:GL1) share price is soaring 18% today appeared first on The Motley Fool Australia.

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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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You may be wondering why the Woolworths Group Ltd (ASX: WOW) share price is backtracking today.

With the earning seasons wrapped up for most of the S&P/ASX 200 Index‘s (ASX: XJO) shares, Woolworths is trading ex-dividend.

This comes after the retail conglomerate released its half-year scorecard on 23 February, reporting mixed numbers across key financial metrics.

Nonetheless, the board opted to slash its upcoming interim dividend by 26.4% over the prior corresponding period.

At the time of writing, the company’s shares are down 1.44% to $34.73.

Below we take a closer look at Woolworths’ latest dividend and when shareholders can expect payment.

Shareholders set eyes on Woolworths interim dividend

Following the company’s half year results, investors are eyeing Woolworths shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor does not buy Woolworths shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can shareholders expect to be paid?

For those eligible for Woolworth’s interim dividend, shareholders will receive a payment of 39 cents per share on 13 April. The dividend is fully-franked at a corporate tax rate of 30%, which means investors will receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead. This will be based on a 10-day volume-weighted average price from 8 March to 21 March.

There is no DRP discount rate and the last election date for shareholders to opt-in is on 7 March.

Under the company’s capital management framework, there is typically a 70% to 75% dividend payout.

Woolworths share price summary

Since the beginning of 2022, Woolworths shares have lost 7% on the back of weakened investor sentiment. The benchmark ASX 200 index is also down around 4.4% over the same timeframe.

Woolworths shares reached a 52-week low of $33.45 last month, before moving in circles over the following weeks.

Based on today’s price, Woolworths commands a market capitalisation of roughly $42.71 billion and has a trailing dividend yield of 3.06%.

The post Here’s why the Woolworths (ASX:WOW) share price is sliding today appeared first on The Motley Fool Australia.

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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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It can be useful for investors to keep an eye on which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors. If they are buying, it suggests that they are confident in the direction the company is heading.

With that in mind, listed below are a few ASX shares that have reported meaningful insider buying recently. They are as follows:

Bega Cheese Ltd (ASX: BGA)

A change of director’s interest notice reveals that the Chairman of this diversified food company has taken advantage of recent weakness in the Bega share price to top up his holding. Executive Chairman, Barry Irvin AM, has picked up 10,000 shares for $46,358.13 through an on-market trade on 2 March. This increased Mr Irvin’s holding to a total of just over 2 million shares. The Bega share price dropped to a 52-week low on Wednesday.

City Chic Collective Ltd (ASX: CCX)

No less than four of this plus-sized fashion retailer’s directors have been loading up on shares following a sharp pullback in the City Chic share price. Its shares came crashing down to earth last month following the release of a disappointing half year result. Based on these on-market purchases, which range from parcels worth $38,000 to $192,000, City Chic’s directors appear confident that the company will bounce back strongly.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman’s co-founder and Chairman, Gerry Harvey, has been buying this retailer’s shares. Mr Harvey picked up approximately 651,000 shares for a consideration $3.365 million via an on-market trade on 28 February. Goldman Sachs would approve of this purchase. Last week the broker retained its buy rating and $6.00 price target on the retail giant’s shares.

Temple & Webster Group Ltd (ASX: TPW)

Another change of director’s interest notice reveals that its co-founder and non-executive director, Conrad Yiu, has been buying shares. Mr Yiu picked up 20,915 shares through a series of on-market trades between 22 to 25 February. This came at the cost of just under $150,000. With the online furniture retailer’s shares down by almost 50% over the last six months, it appears as though this director believes it has created a buying opportunity.

The post Here are 4 ASX shares insiders are putting their money behind appeared first on The Motley Fool Australia.

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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. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Temple & Webster 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

If you’re considering taking a position in Apple (NASDAQ: AAPL) following its 8% pullback so far in 2022, you’re not alone. Price drops of this size are nothing unusual for this stock and have proven to be great buying opportunities amid what’s become a reliable long-term uptrend. As it turns out, making the world’s most popular smartphone — and supporting its sales with a robust app ecosystem — is a lucrative business. Apple is the world’s biggest and most profitable company for a reason. 

However, before taking a swing on a single stock, it’s useful to at least consider a better-balanced alternative like a mutual fund or exchange-traded fund (ETF) that mirrors a blue-chip index like the Dow Jones Industrial Average (DJINDICES: ^DJI). Let’s see why.  

Why Apple looks so juicy

Admittedly, Apple is a very compelling investment prospect. While they’ve not moved in a straight line, Apple shares are up 27% for the past 12 months, higher by 140% for the past two years, and up by nearly 300% since this point in 2019. 

And well they should be. The $2.7 trillion company has continued to grow even when it arguably shouldn’t have. It turned last fiscal year’s $366 billion worth of revenue into net income of nearly $95 billion, shrugging off the impact of the pandemic. That gross revenue total was (another) record. 

iPhone revenue growth seems particularly unstoppable, supported by growing interest in the apps the devices operate. All told, the company sold $192 billion worth of iPhones last year and leveraged them to drive more than $68 billion worth of digital content. Apple’s services business, in fact, ramped up another 27% year over year.

Simply put, Apple looks bulletproof. The company’s growth shows no signs of slowing down despite lingering chatter about smartphone sales leveling out. And, to the extent smartphone saturation and competition will eventually catch up with the company’s iPhone sales, Apple’s got a proven plan B that many companies would be thrilled to call their plan A. That’s more than a little exciting.

Except, maybe Apple isn’t your best next trade, especially if it’s one of your first-ever trades.

The flavors you’re not getting when you bite into Apple

To be clear, you could certainly do much worse than jumping into an Apple stake. It’s a proven company, and a proven stock.

Make no mistake, though. When you own Apple, you’re not just betting on one company, or even on just one kind of business. You’re mostly betting on the iPhone, and what the iPhone can do for the company. See, more than half of 2021’s top line stemmed from iPhone sales, and though the company’s $68 billion services business only makes up about 18% of its total revenue, the bulk of that $68 billion is generated by iPhone users.

In other words, one unexpected iPhone misstep could produce outsize problems for the company.

That’s not a risk you run when buying a basket of diversified stocks like the Dow Jones Industrial Average. Not only does no single company account for more than a tenth of the index’s value (with most of them making up less than 5% of its value), the Dow is highly diversified even within itself. Technology stocks are the biggest single sector, yet they still only make up 22% of the index’s weight. Financials, healthcare, and discretionary stocks are well represented in the Dow as well. The only segment of the market that’s not represented by the Dow Jones Industrial Average is the utilities sector, and only because it’s got its own Dow index.

This is no minor detail. While diversification may often feel like unnecessary defense, that’s a judgment being made when times are good. You diversify a portfolio to protect it from all the unknowns. If you wait to start diversifying after certain pockets of the market are running into turbulence, you’re already too late.

Just food for thought

Like any other piece of investing advice, take this one with a grain of salt. It may not be right for you. If your portfolio already has a well-diversified foundation consisting of index funds, you can afford to venture into higher-risk, higher-reward singular positions like Apple. You may also be eyeing Apple as a more speculative, short-term position that supersedes a long-term mindset. Nothing is ever completely unjustified.

For most investors, though — and particularly anyone just starting to build a portfolio — a basket of blue chips like the Dow is the first position you should take on, and should remain the core of your holdings.

Bottom line? Doing a little too much stock picking and not enough indexing is an easy way to unnecessarily chip away at a portfolio’s value, even when Apple is one of those picks. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better buy: Apple or all 30 Dow Jones stocks? appeared first on The Motley Fool Australia.

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James Brumley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Australian fintech Zeller has officially reached unicorn status – its valuation has surpassed $1 billion – and it’s using that might to win customers from some of the ASX’s biggest banks. 

The unlisted company – provider of financial services for businesses – hit the milestone in just two years. 

It was co-founded by Square’s (Block Inc CDI (ASX: SQ2)) former head of Asia Pacific and Australia country manager Ben Pfisterer, and its former strategy growth lead, Dominic Yap. 

The pair remain Zeller’s CEO and COO.

Let’s take a closer look at what Zeller is bringing to the table against S&P/ASX 200 Index (ASX: XJO) banks.

Zeller fronts up to ASX banking giants

Zeller’s latest funding round has inked it as the fastest Aussie start-up to reach unicorn status. 

In doing so, it has overtaken Airwallex’s previous record of three years.

Just eight months after its launch in May, the fintech had welcomed more than 10,000 Australian businesses to its books.

Zeller hit its milestone $1 billion valuation after a $100 million funding round. The round was led by venture capitalist firm Headline alongside Aussie super fund Hostplus.

And ASX big banks – look out! Zeller will be using the funds to push its product range’s development and “reimagine and replace” traditional banking services.

Previously, Zeller dug into the minds of its customers, finding 67% of businesses wanted to dodge ASX big four banks.

That’s bad news for Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

So far, 80% of its customers have switched from traditional banks, with most taking up more than just payment products.

“Australian business banking is fundamentally broken,” Pfisterer said.

“A lack of innovation from the incumbents means merchants are overlooked and underserved, at a time when they should be thriving.”

After its latest funding round, Zeller is looking to drop new financial offerings for businesses. 

These will include online payments, “next-generation” banking abilities, “enhanced” credit and debit cards, expense management, lending, and more.

“Our team set out to reimagine business banking by delivering a two-sided finance services operating system,” Pfisterer said. 

“Banking should no longer be transactional … We want Zeller to be at the centre of a business’s financial ecosystem, enabling them to have a complete view of every customer interaction and the overall health of their business.”

The post Australia’s newest tech unicorn, Zeller, is taking on the ASX banks. Here’s how appeared first on The Motley Fool Australia.

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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. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Bubs Australia Ltd (ASX: BUB) share price is pushing higher on Thursday morning.

At the time of writing, the infant formula company’s shares are up over 2% to 45.5 cents.

Why is the Bubs share price pushing higher?

The rise in the Bubs share price today has been driven by the release of an interesting announcement relating to the company’s daigou activities.

According to the release, the company has entered into an agreement with leading Hong Kong-based daigou distributor, Willis Trading Limited. It has been Bubs’ single largest customer throughout FY 2021 and the first half of FY 2022.

The agreement will see Willis Trading rewarded with up to 29.5 million Bubs shares (4.8% of Bubs’ issued capital) based on product purchases over the next couple of years.

Bubs will issue these shares to Willis Trading as consideration if it meets certain product purchase milestones of at least A$50 million in FY 2022 and at least A$120 million in FY 2023.

Based on the current Bubs share price, the total potential consideration equates to $13.4 million. Given the relatively lukewarm response from the market today, some shareholders appear unsure if this deal will be value accretive or dilutive.

Management commentary

Bubs Founder and Chief Executive Officer, Kristy Carr, said: “Bubs has a proven track record of establishing strategic partnerships with prominent channel partners. We have worked closely with Willis Trading over several years as our lead distribution partner for the Corporate Daigou Channel. Together we have successfully returned Bubs Daigou sales to high growth, delivering record revenues in the first half of FY22, increasing 276% on the prior year, now exceeding pre-COVID levels.”

“The next phase of our partnership is an exceptional and innovative opportunity to deepen our engagement with the Daigou Channel and get closer to our end consumers in China. This strategic alliance between Bubs brand power and the Channel’s deep understanding of Chinese consumers provides more direct identification of our target consumers and their product needs in real time. Word of mouth and peer endorsement is critical in our category, and we view the Daigou Channel as expert community builders. Through one person, we can reach hundreds of consumers.”

“Developed in response to the pandemic, the new supply chain model delivers seamless delivery to our end consumers with heightened traceability and visibility of inventory throughout the Channel, whilst operating within the Chinese government tax system. Building on the momentum already established under Bubs’ Daigou 2.0 strategy, we are confident the deeper collaboration embodied in this transaction will rapidly accelerate our China business and provide a platform for future innovation that will widen our points of engagement with our target consumers,” Mrs Carr concludes.

The post Bubs (ASX:BUB) share price higher on daigou deal appeared first on The Motley Fool Australia.

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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 recommended BUBS AUST FPO. 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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In morning trade, the Corporate Travel Management Ltd (ASX: CTD) share price is pushing higher.

At the time of writing, the corporate travel specialist’s shares are up 2% to $22.35.

Why is the Corporate Travel Management share price rising?

Investors have been bidding the Corporate Travel Management share price higher today after its proposed $175 million acquisition of the ANZ-based corporate and entertainment travel businesses of Helloworld Travel Ltd (ASX: HLO) was given a major boost.

According to the release, the Australian Competition and Consumer Commission (ACCC) has stated that it will not oppose the acquisition.

ACCC Chair, Rod Sims, said: “The ACCC reviewed the proposed acquisition as it combined two of the largest corporate travel management companies in Australia. However, we found that it was unlikely to result in a substantial lessening of competition.”

“Large travel management customers told us that there are a range of competitors that would be capable of servicing their needs, including Flight Centre Travel Group Ltd (ASX: FLT) and Amex GBT,” Mr Sims added.

The ACCC believes that these providers will continue to compete strongly with Corporate Travel Management after the acquisition. Furthermore, it also feels that other large overseas-based travel management companies, such as BCD Travel and CWT (Carlson Wagonlit Travel), and newer companies such as TripActions, could expand in Australia.

What now?

Gaining ACCC approval is a major positive for the deal and brings completion a big step closer.

Corporate Travel Management notes that completion of the acquisition is subject to the satisfaction of the remaining conditions precedent set out in the agreement. Both parties are continuing to work effectively together to satisfy these remaining conditions.

If all goes to plan, completion of the acquisition is expected to occur on 31 March 2022.

The post Corporate Travel Management (ASX:CTD) share price higher on ACCC Helloworld update appeared first on The Motley Fool Australia.

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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. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Tritium DCFC Limited (NASDAQ: DCFC) saw its shares jump 15.7% on Wednesday. It was a volatile day, though, as the stock made big gains only to end the day on the negative side. The company, which produces direct current fast chargers for electric vehicles, saw its stock close at $7.92 on Tuesday then open Wednesday at $8.12 before jumping all the way up to $9.16 in the first hour of trading. As the selling began, the stock dropped all the way to a low of $7.65 in the afternoon. The stock is still closer to its 52-week low of $6.42 than its high of $19.75. 

So what

Thanks partly to the current conflict between Russia and the Ukraine, the price of Brent Crude Oil has shot up above $114 a barrel. While that may be good for oil companies, it is also good for electric vehicle makers and any business connected with electric vehicles. The prospect of increased gas prices has convinced more consumers to look into electric vehicles and more governments to make decisions to boost EV production. On Tuesday, President Joe Biden specifically mentioned his administration plans to build more charging stations.

Even before President Biden’s remarks, Tritium was operating with plenty of tailwinds. It recently said it had sales of $141 million in 2021, up 136% over 2020 sales. In the last six months of 2021, the company said it had sales of $98 million, up 416%, year over year.

There are several reasons why investors remain wary, though. The company isn’t profitable, hasn’t filed a true quarterly report yet, is relatively unknown, and is dealing with supply issues. The company said its contracted backlog as of Dec. 31 equals 48% of its 2022 revenue target, adding it expects $170 million in revenue in 2022.

Now what

The stock is still down more than 22% for the year. The big reason for Wednesday’s wild swing is that a lot of investors, frustrated with the stock’s decline, jumped at the opportunity to sell when the shares rose. The stock has only been trading as a public company on the NASDAQ since Jan. 14 of this year, not long before the company mentioned it plans to build a fast-charging plant in Lebanon, Tennessee.

There’s a lot of hype around many EV stocks, so today’s wild swing reflects both the excitement and the skepticism around a relatively new industry. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tritium shares just popped then flopped appeared first on The Motley Fool Australia.

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Jim Halley 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Dominating world affairs is Russia’s recent invasion of Ukraine, which has sparked oil prices and other commodities to soar.

This has led the S&P/ASX 200 Energy (ASX: XEJ) sector to gain more than 20% since the beginning of 2022. When compared to the S&P/ASX 200 Index (ASX: XJO), the ASX benchmark has fallen 4.4% over the same time frame.

Despite Western reluctance to target and sanction Russia’s energy sector, gas and oil prices have reached 8-year highs. The Biden administration stated it was not in the United States’ strategic interest to ban Russian oil exports. This is because of the disruption it would cause to the global oil supply and the impact it would have on fuel prices.

So, what does the future hold for investors who hold ASX shares with exposure to the energy markets?

Let’s take a look at first how Russia stacks up as a global energy producer.

European dependence on Russian energy

To say that Russia is an important energy supplier is an understatement.

The world’s biggest country provides crucial gas and oil throughout Europe, especially to the bloc’s largest economy, Germany.

To put this into perspective, Russia accounts for 49% of natural gas to Germany, 46% to Italy, and 24% to France. Other smaller countries such as North Macedonia, Bosnia and Herzegovina, and Moldova receive 100% of their gas supply from Russia.

A Eurostat report published in 2019 stated that Europe consumes 27% of Russian crude oil and 47% of solid fossil fuel imports.

As a whole, Russia exports roughly 10% of oil, 20% of gas, and 20% of thermal coal around the world.

What does this mean for ASX energy shares?

All of the major ASX energy shares have rallied in recent times on the back of multi-year highs for crude oil and natural gas.

While Organisation of Petroleum Exporting Countries (OPEC) has signalled its refusal to increase production growth, energy prices could storm higher.

Last month, the International Energy Agency released its oil market report noting that demand is outstripping supply.

With increased prices, this means additional revenue for Australia’s energy companies, which in turn leads to a higher share price.

Already, top industry players like Santos Ltd (ASX: STO) have climbed almost 10% in the past week.

It’s more than likely that volatility will put upward pressure on energy prices in the near future.

The post Why is it so hard to keep oil prices grounded and what could it mean for ASX shares? appeared first on The Motley Fool Australia.

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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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