Why is the Woodside share price outperforming today?

Woodside shares are marching higher today. Let's find out why.

| More on:
Smiling attractive caucasian supervisor in grey suit and with white helmet on head holding tablet while standing in power plant.

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

Woodside Energy Group Ltd (ASX: WDS) shares are outpacing the wider market today.

Having closed in the red for the past four trading days, shares in the S&P/ASX 200 Index (ASX: XJO) energy stock are up 1.1% at the time of writing on Thursday, changing hands for $23.94 apiece.

That's well ahead of the 0.4% gains posted by the ASX 200 at this same time. And it also outpaces the 0.7% gains on the S&P/ASX 200 Energy Index (ASX: XEJ).

So, what's lifting Woodside shares?

Woodside shares marching higher

Well, we can rule out any big uptick in global oil prices.

Brent crude oil is trading for US$72.22 per barrel, which is right about where the oil price stood yesterday. That's down from recent highs of US$80.93 per barrel on 8 October.

However, investors with a longer-term horizon may be buying Woodside shares with an eye on the changing of the guard in the United States.

On 20 January, Donald Trump will move back into the White House following a resounding US presidential election victory. His Republican party now also holds the majority in both houses of Congress.

This could impact energy prices and Woodside shares if Trump decides to increase US military pressure on Iran, Hezbollah and Hamas in the ongoing conflict embroiling Israel. A more hawkish US military stance in the oil-rich Middle East could potentially cause oil prices to rise sharply.

On the flip side, Trump's pro-fossil fuel policies, encapsulated by his slogan, "drill baby, drill", could lead to even higher output from the US, already the world's top oil producer. This could keep oil prices subdued.

But with Woodside's large and growing footprint in the United States, the ASX 200 energy stock could directly benefit from easing regulations on oil and gas exploration and production in the world's top economy.

In the last two years alone, Woodside has committed to investing approximately $30 billion in North America.

What else is happening with the ASX 200 oil company today?

Woodside shares could enjoy ongoing support from the company's operated Trion development project, situated offshore in Mexico.

Woodside is developing Trion in a joint venture with Mexico's state-owned petroleum corporation PEMEX. The project is more than 15% complete.

This morning, Woodside announced that it had passed a major milestone after starting steel fabrication for the project's semi-submersible floating production unit (FPU).

Hyundai Heavy Industries is carrying out the steelwork in South Korea.

Commenting on the progress at Trion, Woodside CEO Meg O'Neill said, "The steel-cutting ceremony kicks off a multi-year construction campaign for the Trion FPU, which is the critical path for the development as we progress towards targeted first oil in 2028."

Woodside shares have come under pressure in 2024, down 24% year to date.

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 Energy Shares

A corporate executive in a suit and wearing boxing gloves slumps in the corner of the ring representing the battered Zip share price and consideration reportedly being given to dumping the company's UK operations
Energy Shares

Down 55% in 6 months, why I think Paladin Energy shares are now a bargain buy

I think ASX 200 investors have overreacted in selling down this ASX 200 uranium stock.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Energy Shares

Is Woodside stock a buy for its 8% dividend yield?

Woodside's dividends look fat, but proceed with caution...

Read more »

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone
Share Fallers

ASX 200 uranium stock alert: Paladin Energy shares just crashed 29%!

Paladin Energy shares are under intense selling pressure on Tuesday.

Read more »

A happy woman wearing a sweatband at the gym celebrates success or an achievement by puffing up and flexing her muscles with pride.
Energy Shares

1 ASX dividend stock down 43% I'd buy right now

Here’s a dividend stock worth getting energised about.

Read more »

A happy woman flies with arms outstretched on her boyfriend's back on the beach at dusk.
Energy Shares

2 ASX utility stocks that are smart buys for Aussies in November

These two could be standouts, according to top brokers.

Read more »

Miner looking at a tablet.
Energy Shares

Down 12% in a month! Is the Woodside share price finally back in bargain territory?

This stock has lost some investor energy. What now?

Read more »

sad looking petroleum worker standing next to oil drill
Energy Shares

Santos shares hit new lows in October. What next?

There's an interesting risk/reward calculus at play.

Read more »

a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.
Technology Shares

The great Australian ASX Green Tech rally is starting now

The future could be bright – and green, experts say.

Read more »