Beach Energy Ltd surged higher reaching its highest point in more than a year on Thursday.
The gain likely followed news that the price of oil traded at its highest point since March’s 13-year high overnight. Contrary to that, it reached a new 52-week high of $1.91 earlier today – representing a 1.87% gain. That marks its highest point since January 2021.
Making its gains even more impressive is the broader market’s lacklustre performance. The S&P/ASX 200 Index (ASX: XJO) is currently down 1.22% while the All Ordinaries Index (ASX: XAO) has slumped 1.26%.
The Beach Energy share price leapt to a new 52-week high today amid rising oil prices. The Brent crude oil price rose 2.5% to US$123.58 a barrel overnight. On the flip side, West Texas Intermediate crude price rose 2.3% to US$122.11 a barrel.
That’s likely helping the broader S&P/ASX 200 Energy Index (ASX: XEJ) on Thursday. It’s one of only two sectors in the green today, having gained 0.88% at the time of writing.
Shares in Beach Energy’s fellow energy sector constituents Woodside Energy Group Ltd and Worley Ltd also lifted to their highest point in more than 12-months today.
Rising oil prices came as demand in the United States continued to soar amid concerns China’s demand could increase as lockdowns ease, reports Reuters.
Geopolitical tensions between the US and Iran have risen as negotiations over the latter’s nuclear program appear to turn sour. That means sanctions on Iranian oil could remain in place and the market will continue to be tighter than it otherwise would.
Taking into account today’s benefits, Beach Energy is 44.6% higher than it was at the start of 2022.