Oil stocks have had a very volatile year due to the volatility in the underlying commodity. With demand for energy decreasing during the pandemic, it has not been good news for the commodity. In the last couple of months, however, oil prices have climbed due to increased economic activity in markets such as India and China.
Woodside Energy Trading Singapore Pte Ltd is a subsidiary of Woodside Petroleum in Australia. Woodside has been showing signs of recovery ever since the news of a vaccine broke out in November last year.
Woodside Petroleum is Australia’s biggest independent gas producer and they provided a third quarter report for the period ended 30 September 2020. It delivered production of 25.3MMboe, up 2% from Q3 2019; delivered sales volume of 26.7MMboe, up 10% from Q3 2019. It concluded the first phase of the Greening Australia and Woodside Native Reforestation Project.
Woodside Energy and Germany’s RWE Supply and Trading GmbH signed a 7 year sale and purchase contract for LNG supply from the global portfolio of Woodside Petroleum starting in 2025. The deal means that Woodside Petroleum will supply 0.84 million tonnes of LNG each year. The deal is forecasting strong market demand for LNG in the second half of the decade. Woodside said that the customers were seeking new energy supplies at a time that supports development of their Scarborough project.
“This agreement with RWE is another demonstration of the momentum we are gathering ahead of our targeted FID on Scarborough and Pluto Train 2 in the second half of this year,” said Meg O’Neill, executive vice president of development and marketing.
The demand for oil and gas has been gathering momentum and some of the top ASX oil stocks have regained some of the ground they lost during the pandemic. Woodside Petroleum shares currently trade at $24 a share after dipping by 5.29% today.
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