Woodside (WDS) is up ~6%, trading at its highest level since October ’23, as oil and European gas prices surged overnight following Iran’s attack on a major LNG facility in Qatar. The strike targeted Ras Laffan Industrial City — home to the world’s largest LNG export complex — with reports indicating the site has sustained “extensive damage” after Tehran had previously warned of potential attacks on Gulf energy infrastructure.
The Ras Laffan site was among those named by Iran in a list of energy assets across the region that it could target, and concerns are rising as the US-Israel don’t appear to be able to stop them following through on their threats.
The last time Brent crude traded above US$110/barrel, in July 2022, Woodside (WDS) was around $32, broadly in line with current levels. Deciding on what to from here comes down the oil & gas prices, both of which have been driven higher by the US-Israel strikes on Iran, coming up for 3-weeks ago. At this stage our preferred scenario is we are more than midway through the Iranian war which suggests upside is limited.
- Another short-term spike higher by oil, gas and WDS wouldn’t surprise but we wouldn’t chase such a move.
MM is neutral toward Woodside Energy (WDS) around $33
Add To Hit List
