Insights

Why is the Oil Search (ASX:OSH) share price having such a great start to the week?

With air travel expected to rebound, energy demand is likely to remain strong.
The post Why is the Oil Search (ASX:OSH) share price having such a great start to the week? appeared first on The Motley Fool Australia. –

The Oil Search Ltd (ASX: OSH) share price is off to a great start this week. Shares are currently up 2.3% to $4.33 per share.

And it’s not just the Oil Search share price lifting off today.

Fellow S&P/ASX 200 Index (ASX: XJO) energy share Santos Ltd (ASX: STO) is up 2.8% at time of writing. And Woodside Petroleum Limited (ASX: WPL) is up 2.7%.

This as the ASX 200 itself has given back its early morning gains and is currently down 0.2%.

So, what’s helping boost ASX 200 energy shares?

Energy markets remain tight

The answer to that question lies in the rapidly increasing demand for crude oil amid sluggish increases in supply.

As the world emerges from COVID-19 lockdowns, more factories are returning to full operation, more ships are plying the oceans, and more airplanes are taking wing.

Yet, in good news for the Oil Search share price, global crude output is only increasing at a trickle. Well, a 400,000 barrel per month trickle.

Last Thursday (overnight Aussie time) OPEC+ announced that it was sticking with its production schedule. That schedule sees the cartel of oil producing nations ramping up its self-restricted crude output by 400,000 barrels per month.

That’s less than the monthly increase in global demand. And it’s seeing crude price again trend higher.

Over the weekend Brent crude oil popped 3.1%, from US$80.54 per barrel to US$83.03 per barrel. Just 1 year ago that same barrel was trading for a lowly US$42.40 per barrel, according to data from Bloomberg.

Certainly a nice tailwind for Oil Search shareholders.

Oil Search share price snapshot

Amid soaring energy prices, the Oil Search share price has rocketed 52% over the past 12 months. That well outpaces the 18% gains posted by the ASX 200 over that same time.

Oil Search shares are down 4% over the past month.

The post Why is the Oil Search (ASX:OSH) share price having such a great start to the week? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Oil Search right now?

Before you consider Oil Search, 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 Oil Search 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

5 things to watch on the ASX 200 on Thursday

Why ASX 200 energy shares are tanking on Thursday

5 things to watch on the ASX 200 on Thursday

ASX 200 energy shareholders will welcome this Blackrock forecast

Oil Search (ASX:OSH) share price up amid tighter production forecast

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!