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Woodside (ASX:WPL) share price surges another 9% today as oil resumes rally

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The Woodside Petroleum Ltd (ASX: WPL) share price is surging today.

Again.

Spurred by spiking oil and gas prices, shares in the S&P/ASX 200 Index (ASX: XJO) energy giant are up around 9% in afternoon trading.

The Woodside share price closed on Friday at $31.42. It currently stands at $34.16.

And it’s not just Woodside shares rallying amid the global surge in energy prices. While the ASX 200 is down 1.26% at time of writing, the S&P/ASX 200 Energy Index (ASX: XEJ) is up around 5%.

What’s happening with energy prices?

Gas prices are rocketing; coal is trading at all-time highs; and Brent crude oil is worth US$118 per barrel. That’s up 42% from the $69 per barrel Brent was trading for as recently as 1 December, according to data from Bloomberg. This puts crude prices at 13-year highs and is helping drive the Woodside share price sharply higher today.

Energy prices had already been increasing on resurgent demand following easing of COVID-19 restrictions and limited supply growth.

Then Russia, the world’s number two oil exporter with a similarly large footprint in coal and gas, surrounded and invaded Ukraine.

Western nations are now actively debating adding oil to the sanctions already imposed on Russia. That news saw Brent crude prices spike 8% over the past 24 hours alone.

While higher energy costs will come as bad news to energy intensive companies, like ASX travel shares or manufacturers, they’ve certainly added some strong tailwinds for the likes of the Woodside share price.

Woodside share price in review

You’re unlikely to hear any Woodside shareholders complaining about the company’s performance in the New Year.

The Woodside share price has surged 56% since the opening bell on 4 January. For some context, the ASX 200 is down 6% in that same time.

At the current price, Woodside pays a 5.96% dividend yield, fully franked.

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