The S&P/ASX 200 Index (ASX: XJO) has shaken off its recent malaise today and is currently up 1.1%.
ASX 200 energy giant Woodside Petroleum Limited (ASX: WPL) is edging ahead of the benchmark, up 1.4% at time of writing.
That marks a lengthy run of outperformance for the Woodside share price, which has now gained a whopping 48% since the opening bell on 4 January. This has seen its market cap grow to some $32 billion.
While the Woodside share price performance stands out amongst its peers, the S&P/ASX 200 Energy Index (ASX: XEJ) has also left the benchmark in the dust.
Despite today's lift, the ASX 200 is down 7% year-to-date, compared to a 20.7% gain posted by the Energy Index.
Image source: Getty Images
Why are ASX 200 energy shares like Woodside outperforming?
You need look no further than the eye watering petrol prices posted at your local servo to grasp the biggest tailwind propelling ASX 200 energy shares higher.
Fossil fuel prices, already trending upwards at the end of 2021, have rocketed to record or near-record highs following Russia's invasion of neighbouring Ukraine.
Brent crude is up another 1.4% over the past 24 hours. It's currently trading for US$130 per barrel, after briefly touching US$132 per barrel earlier in the day, according to data from Bloomberg. That's the highest level since 2008, and clearly helping lift ASX 200 energy shares.
The latest surge in crude prices comes after United States President Joe Biden and United Kingdom Prime Minister Boris Johnson said their nations would ban imports on Russian oil.
"The United States is targeting the main artery of Russia's economy. We will not be part of subsidizing Putin's war," Biden said.
While the US is also targeting Russian coal and gas exports, the UK won't yet follow suit. To date, continental European nations have yet to sign onto the oil ban.
Woodside share price snapshot
As Brent crude oil has soared 42% over the past month, the Woodside share price has gone along for the ride, up 25% since the closing bell on 9 February.
By comparison, the ASX 200 is down 2.8% while the ASX 200 Energy Index is up 10.4%.
