The Woodside Energy Group Ltd (ASX: WDS) share price is rising today amid higher oil prices.
Woodside shares are currently swapping hands at $32.395, a 3.5% gain. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is also up 2.87% today.
So why are Woodside shares having such a good day?
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Oil prices leap 5%
Oil prices jumped more than 5% in US markets on Monday, Reuters reported. Brent crude oil leapt 5% to $106.27 a barrel, while US West Texas Intermediate (WTI) crude oil futures gained 5.1% to $102.60 per barrel.
The oil price rose on dollar weakness and amid speculation the US Federal Reserve could raise interest rates by 75 basis points, rather than 100 points.
In comments, cited by the publication, energy consultancy Ritterbusch and Associates LLC president Jim Ritterbusch said:
Today's strong advance resulted largely from a sizable and broad-based weakening in the U.S. dollar that has been providing a key driver behind daily oil price swings during the past several weeks.
Woodside is a major oil producer. Fellow ASX oil shares Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) are also up 2.72% and 3.79% respectively at the time of writing.
Today's oil price rise could also have been impacted by news Saudi Arabia cannot promise to boost its oil supply. In an ANZ research note, economist Steven Gregorius said:
Crude oil rallied after Saudi Arabia declined to make any promises about future output increases. Saudi ministers insisted any decision would be dictated by market conditions, following US President Joe Biden's visit.
Woodside share price snapshot
The Woodside share price has gained 45% in the past year, jumping nearly 48% this year to date.
For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 28% in the past year and 29% year to date.
Woodside has a market capitalisation of about $61.5 billion based on the current share price.
