Why did the Woodside share price just hit an 8-year high?

Atop Woodside's strong share price performance this year, the company also pays an 8% trailing dividend yield.

| More on:
Young businessman standing on the top of the mountain punching fist in the air.

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

  • The Woodside share price hit eight-year highs this morning
  • The ASX 200 energy stock has benefited from rocketing oil and gas prices
  • The EU is set to ban Russian crude imports on 5 December, while OPEC’s output cuts are commencing this month

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.

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.

Should you invest $1,000 in Apa Group right now?

Before you buy Apa Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Apa Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bernd Struben 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 Share Market News

Excited couple celebrating success while looking at smartphone.
Broker Notes

Bell Potter names the best ASX 200 stocks to buy in May

The broker is feeling bullish on these names this month. Let's find out why.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Opinions

Investing in high-yield ASX stocks has two major negatives

High-yield stocks do have downsides.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »