Insights

Why did the Santos (ASX:STO) share price have such a great month in September?

As the world reopens, energy prices are rocketing.
The post Why did the Santos (ASX:STO) share price have such a great month in September? appeared first on The Motley Fool Australia. –

The Santos Ltd (ASX: STO) share price was a standout performer in September, gaining 18.5% over the month.

To put that in better perspective, the S&P/ASX 200 Index (ASX: XJO) lost 2.7% in September.

So, what’s driving the Santos share price sharply higher?

Energy prices at 7-year highs

If your bottom line rests on oil and gas prices, then naturally you expect to be rewarded when those prices lift off.

And indeed, rewards are what Santos’ shareholders experienced in September, as the Santos share price soared from $6.05 at the close of August to $7.17 per share at the close of last month.

Part of what’s driving shares higher is the surging crude oil price. Brent crude leapt from an already high US$71.59 per barrel on 1 September to end the month at US$78.52 per barrel, a 9.6% increase.

And it’s kept on going from there. Brent crude is currently trading at US$81.26 per barrel, its highest price in 7 years.

This comes as natural gas shortages are driving increased demand for crude oil. According to energy giant Saudi Aramco, “the global natural-gas shortage has boosted crude consumption by 500,000 barrels a day,” Bloomberg reports.

Crude supplies have also been disrupted by the hurricane in the oil rich Gulf of Mexico, and continuing issues with producing during the pandemic.

And yesterday’s decision (overnight Aussie time) by OPEC to stick with its gradual production increases, boosting supply by 400,000 barrels per day commencing in November, looks to be adding more upward pressure to prices as it fell short of consensus forecasts.

According to Rob Thummel, a portfolio manager at energy focused Tortoise, “The consensus was that it was going to be an 800,000 barrel-a-day temporary boost in November.”

While spiking crude costs may not help fuel the global recovery, it’s certainly been beneficial to the Santos share price.

Santos share price snapshot

The Santos share price has gained 45% over the past 12 months, compared to a gain of 23% on the ASX 200.

Year-to-date Santos shares are up 10%.

The post Why did the Santos (ASX:STO) share price have such a great month in September? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Santos right now?

Before you consider Santos, 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 Santos 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

More reading

These were the best performing ASX hydrogen shares of September

ASX 200 energy shares on watch as OPEC meeting drives up oil prices

Why did the Santos (STO) share price lift on Monday?

5 things to watch on the ASX 200 on Monday

Here are the 3 most active ASX 200 shares this Friday

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!