The Woodside Energy Group Ltd (ASX: WDS) share price is outperforming the S&P/ASX 200 Index (ASX: XJO) today.
Shares in the ASX 200 oil and gas stock closed yesterday trading for $37.25. At the time of writing, Woodside shares are swapping hands for $37.72 apiece, up 1.26%.
That’s more than twice the 0.52% gains posted by the benchmark index at this same time.
Here’s what’s helping lift Woodside shares on Tuesday.
What are ASX 200 investors considering?
The energy and resources sectors are outperforming on the ASX today following some promising signals from China’s Politburo. And the Woodside share price is joining the rally.
In meetings, led by President Xi Jinping, the Chinese Communist Party’s top officials have been mulling over possible stimulus measures to spur China’s slowing economic growth.
While details remain few, the Politburo indicated more stimulus measures would be rolled out to help boost the nation’s sluggish property sector and lift domestic consumption.
According to a statement by the Politburo (quoted by Reuters):
Currently, China’s economy is facing new difficulties and challenges, which mainly arise from insufficient domestic demand, difficulties in the operation of some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment.
While most analysts don’t expect China to push through major fiscal or monetary stimulus, any significant increase in energy demand from the nation – the world’s largest crude importer – should offer some heady tailwinds for the Woodside share price.
Indeed, the Brent crude oil price gained overnight on the stimulus news, currently trading for US$82.84 per barrel. That’s up from US$72.26 per barrel a month ago on 26 June.
The Woodside stock price is up 11.3% since then.
Woodside share price snapshot
With today’s intraday lift factored in, the Woodside share price is up an impressive 22% in 12 months. The ASX 200 is up 8% over that same time.
