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.
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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.
