The Santos Ltd (ASX: STO) share price is surging today after oil and gas prices jumped ahead.
The Santos share price is rising 5.87% at the time of writing and is currently trading at $7.485. Meanwhile, the S&P ASX 200 Energy Index is also 3.89% in the green.
Let's take a look at what could be impacting the Santos share price.
What's going on?
Santos shares are rising today, but they are not alone. The Woodside Energy Group Ltd (ASX: WDS) share price is rising 4%, while Beach Energy Ltd (ASX: BPT) shares are lifting nearly 4%. The Carnarvon Energy Ltd (ASX: CVN) share price is rising 3% today.
This follows oil and gas prices lifting overnight. WTI futures jumped 2.7% to US$90.50 per barrel, while Brent Futures lifted 3.1% to US$96.59 a barrel in US markets.
Oil prices lifted amid prices strong economic data, Reuters reported.
OANDA senior market analyst Edward Moya said in comments cited by the publication:
Oil prices rallied after another round of impressive U.S. economic data boosted optimism for an improving crude demand outlook
Meanwhile, European natural gas futures also hit a record amid supply concerns, Bloomberg reported. Amid the European energy crisis, the benchmark contract lifted 6.7% to 241 euros per megawatt-hour.
Santos reported a 300% boost in underlying profit to US$1.27 billion in HY22. Statutory net profit also lifted 230%.
Meanwhile, in news today, Collins St Asset Management has become a substantial shareholder of Carnarvon Energy, with a 6.86% stake. Carnarvon is Santos' joint venture partner for the Dorado oil and gas project in Western Australia. In half-year results this week, Santos revealed a final investment decision on the project will not be made in 2022 due to inflation pressures and supply chain challenges.
