It’s a good day to be an ASX 200 energy share. Here’s why.
The post Energy shares are leading the ASX 200 on Monday appeared first on The Motley Fool Australia. –
The S&P/ASX 200 Index (ASX: XJO), the S&P/ASX 200 Energy Index (ASX: XEJ), and the price of oil are all in the green on Monday.
In fact, the ASX 200 energy sector is leading the broader market. It has gained an impressive 2.46% at the time of writing.
For comparison, the ASX 200 is currently up 0.85%.
And that gain isn’t far ahead of the surge that oil prices are currently enjoying.
According to CNBC, the price of West Texas Intermediate Crude oil has taken off over the past 24 hours. It’s gained 1.6% to reach US$75.19 a barrel at the time of writing. The cost of Brent crude oil is doing well too, having increased 1.6% to reach US$79.38 a barrel.
Of course, the share prices of ASX 200 energy giants are also enjoying a day in the sun.
The Woodside Petroleum Limited (ASX: WPL) share price is leading the index with a 3.6% gain.
Viva Energy Group Ltd‘s (ASX: VEA) stock is bringing up the ASX 200 Energy Index’s rear. At the time of writing, it has gained 0.8%.
Let’s take a look at what’s got the energy sector up in the air on Monday.
ASX 200 energy sector up alongside oil price
The ASX 200 energy sector is leading the market today as the price of oil surges once more.
According to reports by Reuters, the price of oil is continuing its climb as global supply chains remain disrupted.
The disruption is part of the aftermath of Hurricane Ida, which wiped out numerous oil drilling and refining operations in the Gulf of Mexico, resulting in oil spills.
Oil producers are reportedly pulling barrels of the commodity from their inventory to sate demand as they battle to get their operations back up and running.
Additionally, some members of OPEC+ are struggling to pick up the slack as under-investment and maintenance delays weigh on their production abilities.
All this has left the global market demanding more oil than is available, jacking up prices as a result.
Fortunately, the ASX 200 and its energy sector is seemingly profiting off the oil market’s struggles.
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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. 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.