Insights

Why the Woodside (ASX:WPL) share price has rallied 24% in 3 weeks

Some analysts are forecasting crude oil will top US$100 per barrel this year.
The post Why the Woodside (ASX:WPL) share price has rallied 24% in 3 weeks appeared first on The Motley Fool Australia. –

The Woodside Petroleum Limited (ASX: WPL) share price is bucking the wider selling trend on the S&P/ASX 200 Index (ASX: XJO).

Woodside is up 0.2% at time of writing, while the ASX 200 has given back early morning gains and is currently down 0.2%.

The Woodside share price has outperformed the benchmark for some time now.

Taking a look at the past 3 weeks, it’s up 24% since the closing bell on 20 September. That compares to a 0.5% gain on the ASX 200.

Below we take a look at what’s driving investor interest in the Aussie energy giant.

Namely…

A global energy crunch

There are numerous factors at play that determine any company’s share price.

For the Woodside share price, one of those factors is the company’s plans to merge with BHP Group Ltd‘s (ASX: BHP) oil and gas business, which it announced in mid-August.

But one of the strongest tailwinds the company has enjoyed of late is soaring energy prices.

As the world moves to reopen, demand for everything from coal, to natural gas, to crude oil (and more) is booming. Meanwhile, new supplies are lagging.

The result?

International benchmark Brent crude prices have rocketed 12.8% in just the past 3 weeks, from US$73.92 per barrel on 21 September to US$83.33 per barrel today.

These kind of price rises often go straight to the bottom line for commodity producers. That’s because their fixed costs remain largely the same, regardless of the price of the fuel they pump from the ground.

Hence, the 24% leap in the Woodside share price isn’t unexpected.

Indeed, most ASX energy shares have enjoyed a strong run lately. The S&P/ASX 200 Energy Index (ASX: XEJ), for example, is up 20% in 3 weeks.

Woodside share price snapshot

As we saw above, the Woodside share price has slightly outpaced the Energy Index over the last 3 weeks and left the ASX 200 in the dust.

Year-to-date Woodside shares are up 10%. That’s right in line with the 10% gains posted by the Energy Index and just edges out the 9% gains made on the ASX 200.

The post Why the Woodside (ASX:WPL) share price has rallied 24% in 3 weeks appeared first on The Motley Fool Australia.

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

More reading

5 things to watch on the ASX 200 on Tuesday

ASX 200 energy shares rise amid market sell-off

Here’s what happened to the Woodside Petroleum (ASX:WPL) share price in the FY22 first quarter
5 things to watch on the ASX 200 on Monday

5 things to watch on the ASX 200 on 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!