The Santos Ltd (ASX: STO) share price is on the move today. Shares in the Aussie energy giant have charged 2.77% higher at the time of writing to $6.49 per share.
That's despite no new announcements from the oil and gas producer as the broader S&P/ASX 200 Index (ASX: XJO) also climbs.
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Why is the Santos share price charging higher?
The big factor that appears to be sparking today's Santos share price surge is climbing crude oil prices. The last 18 months or so have been quite volatile for the key commodity. However, overnight there was good news for investors with both Brent and WTI crude oil prices climbing higher.
Rising fuel demand and a drawdown on US crude oil inventories led to strong gains overnight. WTI crude futures rose 2.5% to US$72.23 per barrel while Brent crude futures settled up 2.5% at US$76.19 per barrel.
That is good news for a major producer like Santos. Those overnight gains have been reflected in today's strong Santos share price rally. It's not just Santos that is enjoying the gains with Woodside Petroleum Ltd (ASX: WPL) and Oil Search Ltd (ASX: OSH) shares also climbing higher on Thursday.
It's welcome news for shareholders who watched ASX 200 shares get smashed on Monday and Tuesday. Fears over the financial woes of Chinese real estate giant Evergrande Group spooked markets earlier in the week but many shares are paring back those losses on Thursday.
The Santos share price is no exception, climbing 2.6% at the time of writing to be up 0.6% on a year to date basis. Shares in the Aussie oil and gas producer are trading at a 34.4 price to earnings (P/E) ratio with a 2.2% dividend yield.
Foolish takeaway
The Santos share price has lifted during Thursday's session. Shares in the energy giant are climbing higher alongside its peers after crude oil prices jumped overnight.
