Home Sports Why have Santos and Woodside shares outperformed the ASX 200 today?

Why have Santos and Woodside shares outperformed the ASX 200 today?


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Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) shares outperformed the ASX 200 today.

Santos shares rose 1.97% to $7.76, while Woodside shares rose 3.15% to $36. For perspective, S&P/ASX 200 Index (ASX: XJO) jumped 0.5% today.

It was a good day for the ASX 200 energy shares in general. The S&P/ASX 200 Energy Index (ASX: XEJ) closed 2.37% higher, making it the best performing sector index on the ASX.

Let’s see what could have increased these two shares of energy today.

Oil and gas prices are rising

Santos and Woodside are major producers of both gas and oil, and prices for both commodities rose today.

Brent oil price rose 0.34% to 96.02 US dollars per barrel, while WTI crude rose 0.27% to 88.15 US dollars per barrel, according to Bloomberg. It follows from this rise in Brent crude oil 2.6% overnight, while WTI crude jumped 3.25%.

Oil prices rose in the background record crude oil exports from the US 5.1 million barrels per day, according to Reuters. Oil inventories also rose by 2.6 million barrels last week.

Quoted by Nissan Securities General Manager Hiroyuki Kikukawa Reuters said:

Solid U.S. crude exports boosted optimism about demand and spurred fresh buying, but concerns that China’s erratic economic policies could continue under President Xi Jinping’s rise to power capped gains in Asia.

Meanwhile, European the price of natural gas rose 4.54% to 104.32 euros per megawatt hour, Trading Economics data show.

Underlying futures rose against the background news that European measures to combat energy prices have been postponed until November 24, according to Bloomberg. This could happen during the European heating season, when demand is expected to be high.

U quarterly report Last week, Woodside emphasized that it had signed long-term marketing agreements for the supply of LNG to the European market. CEO Meg O’Neill said:

Woodside has entered into a long-term sale and purchase agreement (SPA) with Uniper Global Commodities to supply LNG from our global portfolio from 2023 to Europe, where buyers are urgently looking for alternatives to Russian gas.

Stock price snapshot

Woodside shares are up 64% for the year, while Santos shares have jumped 23%.

For perspective, the ASX 200 is down about 8% year-to-date, while the ASX 200 Energy Index is up 43%.

Woodside has a market capitalization more than $68 billion, and Santos has a market capitalization of nearly $26 billion.


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