The Santos Ltd (ASX: STO) share price is gaining steam on Tuesday.
At the time of writing, investors have pushed the share 1.85% higher to $8.00 despite no market-sensitive news. Soon after market open, it hit a high of $8.12, a gain of 3.44% on Monday's market close.
Meanwhile, Brent Crude oil has also reversed off six-month lows to now trade at US$104/bbl, back in line with July ranges as seen below.
Image source: Getty Images
What's up with the Santos share price?
The strength in oil since August 16 has been a net positive for ASX energy players, who have also caught a bid since then.
The S&P/ASX 200 Energy Index (ASX: XEJ) has lifted nearly 11% in the past month of trade as well. It remains in the green across all timeframes, despite its volatility.
However, there remain concerns around supply and demand.
"Brent crude futures climbed to $105 per barrel on Monday, after a 4.4% gain last week, as investors balance supply-side issues against fears that a prolonged global economic slowdown will hurt fuel demand," Trading Economics reported.
Meanwhile, Santos did release an announcement stating that it had shored up additional liquidity by extending its two syndicated bank loan facilities.
In total, this provides Santos with US$1.25 billion in liquidity via the debt issued under these loans. It will pay a floating rate of the Secured Overnight Funding Rate (SOFR) plus 1.3% to 1.5%.
"This is an excellent result for Santos, showing strong support from our bank lenders and
demonstrates our ability to access bank debt at competitive terms," Santos chief financial officer Anthea McKinnell said.
"With these facilities in place, we now have no significant corporate debt maturities until 2027."
What else happened today?
The rise in the Santos share price comes amid fellow ASX oil share Woodside Energy Group Ltd (ASX: WDS) releasing its FY22 half-year earnings.
As The Motley Fool reported earlier today, Woodside's net profit after tax soared by 400% and the company tripled its interim dividend from 30 US cents to US$1.09. The Woodside share price is currently up 1.73% to $35.96.
The Santos share price remains up 31% over the past 12 months and 27% this year to date.
