Why are these ASX energy stocks starting the week off with a bang?

It's been a great start to the week for these energy shares…

| More on:
Happy man standing in front of an oil rig.

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

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?

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.

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 industry worker climbing up metal construction and smiling.
Energy Shares

ASX 200 energy shares lead the market as US trade deals fuel optimism

ASX energy shares lifted 3.94% as more US trade deals led to improved market sentiment.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Energy Shares

$10,000 invested in Paladin Energy shares 5 years ago is now worth…

July 2020 would have been a great time to buy Paladin Energy shares.

Read more »

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 »