The Woodside Energy Group Ltd (ASX: WDS) share price notched a fresh eight-year high in morning trade.
The S&P/ASX 200 Index (ASX: XJO) energy stock was swapping hands for $39.58, up 1.1% from yesterday's close and the highest level since October 2014.
The Woodside shares have retraced since then and are currently down 1.3% for the day.
Image source: Getty Images
What's driving ASX 200 investor interest?
ASX 200 investors have been bidding up the Woodside share price in 2022 amid soaring gas and crude oil prices.
Oil prices went sharply higher on Friday as investors speculated that Chinese authorities may be moving away from the nation's strict COVID zero policies. The rolling lockdowns have drastically slowed China's economic growth and dampened the country's energy demand.
Chinese officials have since squashed those hopes, saying they are committed to a zero-virus policy.
Another major factor that could impact the oil price, and the Woodside share price, is the European Union's pending restrictions on Russian oil exports amid its ongoing invasion of Ukraine. Russian crude imports will be banned by the EU commencing 5 December.
And November also marks the month that the Organization of Petroleum Exporting Countries (OPEC) agreed to cut their production limits, a move likely to hit with a lagging impact.
All told, the supply and demand dynamics see Brent crude oil trading for US$97.92 today. While that's down 0.6% overnight, Brent is still up 3.4% from last Thursday, and up 16.5% from the recent lows it hit on 26 September.
Atop Woodside's strong share price gains this year, the company also pays an 8.0% trailing dividend yield, 50% franked. Certainly an appealing number for income investors, provided the company can maintain those levels of payouts going forward.
Woodside share price snapshot
The Woodside share price has rocketed 76% this year on the back of soaring crude prices, with Brent up 26% in 2022.
For some context, the ASX 200 is down 8% year to date.
