Analysts expect oil prices to hold steady amidst strong demand and supply disruptions.
The post Up 3%, the Woodside (ASX:WPL) share price is surging in September. Here’s why. appeared first on The Motley Fool Australia. –
The Woodside Petroleum Limited (ASX: WPL) share price has climbed 10.45% in the past week to a 1-month high of $23.03. Its resurgence has been supported by the bullish performance of oil.
WTI crude oil is currently fetching US$74.8 a barrel and within an arm’s reach of 7-year highs.
Similarly, Brent crude oil prices have rallied 6.3% in the past week to a 3-year high of US$78.99 a barrel.
Analysts bullish on oil prices
Analysts at Australia and New Zealand Banking Grp Ltd (ASX: ANZ) observed that Brent crude oil prices were holding steady, above three-year highs of US$77/b. They noted Hurricane Ida disruptions and strong demand were chipping away at oil stockpiles, according to S&P Global.
“Other analysts shared similar sentiment, with IG market strategist Yeap Jun Rong saying that recent drawdowns in US crude inventories have added support in the oil market,” S&P Global added.
Hurricane Ida made its way through the Gulf of Mexico in late August, shutting down nearly all the Gulf’s oil production. A recent report from the Bureau of Safety and Environmental Enforcement said that approximately 16.18 percent of total Gulf oil production remains shut in.
The Bureau commented that facilities are currently being inspected by authorities and once all standard checks are completed, production in undamaged facilities will be brought back online immediately. However, facilities sustaining damage may take longer to bring back online.
In addition, S&P Global also pointed to further tailwinds for oil coming from “expectations of a spillover impact from higher gas prices as the natural gas market continues to trade at elevated levels amid supply tightness going into [northern hemisphere] winter”.
Woodside share price snapshot
The Woodside share price has traded flat in 2021, down 0.5% year-to-date.
At the time of writing, Woodside shares are trading for $22.92, up 3.38% on Friday’s closing price.
Recent supply disruptions and strong demand have seen a sudden re-rate for Woodside shares, surging 16.8% in September.
Should you invest $1,000 in Woodside right now?
Before you consider Woodside, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
How has the Woodside (ASX:WPL) share price performed since reporting results?
Guess which sector this week’s top performing ASX 200 shares come from
Motley Fool contributor Kerry Sun 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.