It's been a stellar start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares so far this Monday. At the time of writing, the ASX 200 has gained a rosy 0.64%, and is back to around 8,075 points. But let's talk about what's going on with ASX energy stocks.
Energy stocks seem very much in vogue today, with a few outperforming the broader market quite handily.
Take the ASX 200's largest energy share, Woodside Energy Group Ltd (ASX: WDS). Woodside shares are currently enjoying a 1.74% surge up to $26.29 each.
Karoon Energy Ltd (ASX: KAR) is another market beater so far this Monday. At present, this ASX 200 energy stock has lept 1.6% higher up to $1.72 a share.
Refiner Viva Energy Group Ltd (ASX: VEA) hasn't quite matched the market but has still bounced 0.66% higher to 3.07 a share.
It's a similar story with Beach Energy Ltd (ASX: BPT), whose shares have seen a 0.55% jump to $1.29 each.
So, what's going on with energy stocks that have seen such solid gains for many of the biggest players?
Image source: Getty Images
Why are these ASX energy shares having a great Monday?
Well, there hasn't been much in the way of company-specific news out of any of these energy shares that might easily explain some of those happy gains we are seeing. However, there is a trend we can point to that might help out.
As my Fool colleague James reported this morning, "WTI crude oil price was up 2.5% to US$74.83 a barrel and the Brent crude oil price was up 2.3% to US$79.02 a barrel" on Friday. This spike in oil was probably a result of the recent flare-ups in the Middle East, which saw Israel and the Lebanon-based Hezbollah trade rocket fire over the weekend.
Higher oil prices obviously bode well for the profits, and thus valuations, of oil shares like Woodside and Karoon. So, energy investors can probably thank this factor for the moves we are seeing today.
However, this optimism has not extended to all corners of the ASX energy sector. Other energy stocks like Santos Ltd (ASX: STO), Strike Energy Ltd (ASX: STX) and Ampol Ltd (ASX: ALD) have slipped today. As have coal shares like Whitehaven Coal Ltd (ASX: WHC).
To be fair, Santos has just traded ex-dividend though, so that might be why that stock has lost ground.
Let's see what happens with oil and these ASX energy stocks over the remainder of the trading week.
