The Beach Energy Ltd (ASX: BPT) share price heated up on Monday despite no announcement from the company.
At today’s closing bell, the energy producer’s shares finished 4.1% higher to $1.65 apiece.
By comparison, the S&P/ASX 200 Index (ASX: XJO) was also on the rise, up 1.94% to 6,706 points.
What drove Beach Energy shares ahead on Monday?
Investors were buying up the Beach Energy share price following a rebound across the S&P/ASX 200 Energy (ASX: XEJ) index.
The sector comprises 11 of the largest companies that operate in the oil, gas, and coal industry.
As such, the ASX 200 benchmark energy index surged 2.56% to 9,907 points today.
This represents a sharp turnaround after the sector fell almost 4% over the past two consecutive trading days.
The change in sentiment is being driven by the US Federal Reserve’s indication that a recession in the United States will be narrowly avoided.
Previously, the central bank used its toolkit to combat high inflation levels by tightening up its monetary policy.
The decision to lift interest rates by 0.75% spooked financial markets earlier this month as economists worried that recession was looming.
Nonetheless, these fears have been put to rest for now with global markets rallying to recover the losses incurred.
Shares in Beach’s energy peer Woodside Energy Group Ltd (ASX: WDS) also closed the day 2.32% higher.
The boost in energy shares also follows the price of oil edging slightly higher throughout Monday.
The West Texas Intermediate (WTI) is currently trading at US$107.7 per barrel, up 0.08% in the past 24 hours.
Over the last 12 months, the Beach Energy share price has risen by 27%, with year-to-date up 31%.
The company’s shares hit a 52-week high of $1.905 on 9 June before quickly erasing their strong gains.
Based on valuation grounds, Beach Energy commands a market capitalisation of roughly $3.76 billion.
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