Highlights
- WTI crude oil nears USD 61 per barrel, supported by supply disruptions in Kazakhstan.
- S&P/ASX 200 Energy index rises 2.4%, outpacing the broader market.
- Santos and South32 report increased production and revenue, driving stock gains.
WTI crude oil futures edged closer to USD 61 per barrel on Thursday (22 January 2026), marking a fourth consecutive day of gains. The uptick follows a force majeure at a major Kazakh oilfield, with production at two significant sites expected to remain offline for at least another week. The surge in oil prices has brought energy stocks under the spotlight on the ASX, driving notable gains across the sector.
The S&P/ASX 200 Energy index (XEJ) jumped 2.40% to 8,913.80 points at the time of writing on 22 January 2026, outperforming the broader S&P/ASX 200 index, which rose 0.72% to 8,845.90 points. Rising oil prices contributed to renewed investor interest in energy stocks like Santos and South32, with market watchers noting that momentum in the sector is closely tied to both commodity prices and company-specific production data.
Santos Reports Higher Production and Revenue
Santos Ltd (ASX:STO) shares traded at AUD 6.32, up 4.37% as of 22 January. The company’s fourth-quarter report highlighted free cash flow from operations of approximately AUD 380 million, a 30% increase over the prior quarter, bringing full-year cash flow to AUD 1.8 billion. Production rose 5% to 22.3 million barrels of oil equivalent (mmboe) in the quarter, with sales volumes up 15% to 24.8 mmboe. Full-year sales revenue exceeded AUD 4.9 billion, with unit production costs under AUD 7 per boe, excluding Bayu Undan.
South32 Sees Growth Across Commodities
South32 (ASX: 32) shares climbed 5.02% to AUD 4.39, following a one-month increase of 26.51%. The company maintained its FY26 production guidance for all operated assets. Notable highlights included a 3% rise in alumina production, a 2% increase in aluminium output, and a 58% surge in manganese production. Additionally, Cannington’s zinc-equivalent production increased by 13%, supported by higher silver and zinc grades. Distributions from Sierra Gorda amounted to USD 180 million in the first half.
Outlook
With oil prices continuing to edge higher and quarterly updates confirming favourable operational performance, the ASX energy sector has captured investor attention.






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