Why is the Woodside share price in the green today?

It's proving a positive end to the week for the energy producer.

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Key points
  • Woodside shares are lifting again today 
  • ANZ strategists are predicting the oil price to rise  
  • OPEC's decision to cut oil production could be a "turning point" for the market 

The Woodside Energy Group Ltd (ASX: WDS) share price is outperforming the ASX 200 today.

Woodside shares are rising 0.35% and are currently trading at $34.87. That means the energy producer is up around 8% this week. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.57% in the red today.

Let's take a look at how the Woodside share price is performing today.

An investor looks happy holding a finger to his computer screen while holding a coffee cup in a home office scenario.

Image source: Getty Images

Oil price tipped to rise

Woodside is not the only energy producer rising today. The Santos Ltd (ASX: STO) share price is lifting 2.06%, while Beach Energy Ltd (ASX: BPT) shares are up 1.57%.

The Brent Crude oil price is up 0.08% to US$94.50 a barrel, while WTI Crude Oil is lifting 0.19% to US$88.62, according to Bloomberg.

Meanwhile, ANZ analysts are predicting OPEC's decision to cut oil production as a "turning point" for the oil market. As my Foolish colleague James reported yesterday, OPEC+ has decided to cut production by 2 million barrels per day from November.

In a research report published today, ANZ senior commodity strategist Daniel Hynes and commodity strategist Soni Kumari said:

We see crude oil pushing back towards US$100/bbl in the near term, and reiterate our short-term target of US$115/bbl.

Market sentiment was already bearish in anticipation of a weakening global economy, and this decision should further tighten the market.

The strategists noted tightening monetary policy and "China's COVID-related movement restrictions" could put demand growth under pressure. However, they added:

The oil market is in a fundamentally stronger position than it has been in previous economic downturns.

Stocks are relatively low, in part due to OPEC's supply discipline during the height of the pandemic.

Woodside paid a fully franked dividend of 109 US cents per share to investors yesterday, 263% higher than that paid in the first half of 2021. In the first half of 2022, Woodside's net profit after tax (NPAT) soared 414% to US$1.819 billion.

Woodside share price snapshot

The Woodside share price has surged 59% in the year to date, while it has risen 39% in the last year.

In contrast, the ASX 200 has lost 9% in the year to date and 7% in the past year.

Woodside has a market capitalisation of about $60.7 billion based on the current share price.

Motley Fool contributor Monica O'Shea 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.

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