A number of ASX 200 energy shares are having a terrific day despite the benchmark S&P/ASX 200 Index (ASX: XJO) heading south.
For context, the Woodside Energy Group Ltd (ASX: WDS) share price is up 3.64% to $32.44 while fellow energy giant Santos Ltd (ASX: STO) is trekking 3% higher to $7.375 apiece.
In comparison, the benchmark ASX 200 index is shedding 0.19% to 6,674 points.
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What's fuelling ASX 200 energy shares today?
Investors are bidding up energy shares after Saudi Arabia refused to make any promises about future oil production increases.
Evidently, this has led the S&P/ASX 200 Energy (ASX: XEJ) index to become the best performing sector across the ASX so far today.
Comprising 11 companies that operate in the oil, gas, and coal sectors, the index is up 2.94% to 10,225 points.
Oil prices shot up to more than US$100 per barrel on global markets overnight and could stay there for the remainder of the year if supply wanes.
According to The Guardian, US president Biden held talks with Saudi Crown Prince Mohammed bin Salman on Friday.
While officials at a US-Arab summit did not discuss soaring energy costs, the OPEC+ cartel said it would not increase oil output and instead assess market conditions.
With no deal reached, this is driving up energy prices after they hit two-month lows.
The West Texas Intermediate (WTI) oil price is now up 5.13% from last week's close.
In addition, the weaker US dollar is also providing support to commodity markets.
Rising oil prices mean additional revenue for Australia's energy companies, which in turn leads to higher share prices.
This month, the International Energy Agency released its oil market report noting that outlook for oil markets remains uncertain.
It stated that higher prices and a deteriorating economic environment have started to take their toll on oil demand.
