Why is the Woodside share price bouncing around today?

Woodside shares don't seem to know what they want to do today…

| More on:
A man in business suit wearing old fashioned pilot's leather headgear, goggles and scarf bounces on a pogo stick in a dry, arid environment with nothing else around except distant hills in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • It's turning out to be another strong day for ASX shares this Tuesday
  • But the Woodside Energy share price is bouncing around something fierce
  • There are a couple of things that might be contributing to this ASX 200 energy share's volatility

It's turning out to be another positive day for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. But the Woodside Energy Group Ltd (ASX: WDS) share price is looking a lot more volatile.

At the time of writing, the ASX 200 has gained a healthy 0.56%, putting the index back over 6,800 points.

Woodside shares initially opened strongly this morning, rising just after open to $35.93 a share. But things quickly took a turn for the worse, with the company dropping to $35.38 soon after.

As it presently stands, Woodside Energy is still in the red, nursing a 0.22% loss at $35.53 a share.

So what could be going on here? Let's check out what's new with Woodside.

Woodside share price rises amid new carbon capture partnership

Well, there haven't been any new ASX announcements from this ASX oil share today. However, the company did put out a media release yesterday that could be influencing sentiment.

This announcement gazetted a new strategic collaboration. Woodside declared that it has signed an agreement with the US-based carbon capture and storage company LanzaTech NZ Inc. Here's what the company had to say:

Under the Strategic Framework Agreement Woodside will, in collaboration with LanzaTech and subject to a positive final investment decision, design, construct, own, maintain and operate pilot facilities relating to LanzaTech's technologies.

The Strategic Framework Agreement also allows Woodside and LanzaTech to explore opportunities for the potential commercial scaleup of LanzaTech's technology, which seeks to convert greenhouse gas emissions into new products.

Additionally, Woodside also announced that it would be investing US$50 million into the publicly listed AMCI Acquisition Corp. AMCI is expected to merge with LanzaTech, facilitating LanzaTech's entrance onto the public markets.

Although these moves were announced yesterday, they could well be influencing the Woodside share price today.

But, as always, we can't rule out that the moves of the oil price itself are also at play here. As an ASX energy share, the Woodside share price is easily influenced by how oil is being priced by the markets.

As my Fool colleague James covered this morning, oil had a weak session overnight on the US markets. Both WTI and Brent crude fell. WTI was down 0.3% to US$84.76 a barrel, while Brent dropped 0.1% to US$93.47. This could be why we are seeing some weakness in the Woodside share price this Tuesday.

But investors can't be too upset. Woodside shares remain up a very pleasing 57% in 2022 thus far, and up 47% over the past 12 months.

At the current Woodside share price, this ASX 200 oil share has a market capitalisation of $67.5 billion, with a dividend yield of 8.61%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Does Macquarie rate Woodside Energy shares a buy, hold or sell?

Let's see what the broker is saying about the energy giant.

Read more »

Coal miner standing in a coal mine.
Energy Shares

Up 62% since April, what's happening with Whitehaven shares today?

Whitehaven shares have enjoyed a strong rally since April despite weak coal prices.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Energy Shares

Why Macquarie sees Paladin Energy shares as a buy in the dip opportunity

This uranium stock could be a buy according to the broker.

Read more »

Happy man working on his laptop.
Energy Shares

Opportunity knocks: 2 ASX stocks ready to surge

Analysts expect big things from these shares.

Read more »

Two businesspeople walk in opposite directions on a staircase with arrows under their arms, one pointing up and one pointing down.
Energy Shares

3 largest ASX uranium shares move in different directions amid fresh developments

Here's what is happening with Paladin Energy, Deep Yellow, and Boss Energy shares on Thursday.

Read more »

Bored man sitting at his desk with his laptop.
Energy Shares

Guess which ASX 200 share is sinking 6% on shock CEO exit

Investors are reacting negatively to this surprise news.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Energy Shares

Should you buy Paladin Energy shares after the selloff?

Let's see what Bell Potter is saying about the uranium stock.

Read more »

A smiling woman puts fuel into her car at a petrol pump.
Energy Shares

Guess which ASX 200 energy stock is leaping higher on earnings growth

Investors are sending the ASX 200 energy stock sharply higher on Wednesday.

Read more »