SYDNEY, March 13, 2026, 10:19 AEDT
Santos Ltd climbed 1.49% to close at A$7.49 on Thursday, tracking Brent crude’s jump to $100.46 a barrel. Oil prices responded to tanker attacks and new threats from Iran, keeping the Strait of Hormuz front and center.
Santos stands out as one of Australia’s top oil and gas names, with ties to the LNG market. A lasting jump in crude and LNG prices has the potential to boost its cash flow. Still, the same oil price shock is stoking inflation and renewed rate worries, weighing on equities.
Energy stocks stood out as the sole gainers on Thursday, even as the S&P/ASX 200 slumped 1.5%. Woodside Energy advanced 2.07% to finish at A$31.05, with Beach Energy up 3.59% to A$1.155. The moves highlight the sector’s renewed sensitivity to crude price shifts.
Oil is pulling the strings here. “The market is seriously unbalanced,” warned Jim Burkhard, vice president and global head of crude oil research at S&P Global Energy. Over at Goldman Sachs, analysts are penciling in 21 days with Hormuz traffic at just 10% of normal volumes, then a slow rebound. Reuters
Company-specific factors played a part as well. Earlier this week, Santos and Beach gave the green light to the A$357 million Moomba Central Optimisation project in South Australia’s Cooper Basin. Santos expects the move to generate over A$600 million in capital and operating savings, trimming unit production costs by as much as $3 per barrel. The investment lines up with its cash breakeven range of $45-$50 a barrel—the oil price it needs to cover its outlays.
Santos has already mapped out a more robust production forecast for 2026. Back in January, the company pointed to Barossa gas and the Pikka oil start-up in Alaska as drivers likely to boost output this year. Citi’s Tom Wallington flagged that the first Darwin LNG cargo might “allay investor concerns” around commissioning. CEO Kevin Gallagher said the twin projects could “lift Santos’ production by around 25 to 30 per cent by 2027.” Reuters
Even now, those February results—softer, with annual profit under pressure—are still fresh in investors’ minds. Back then, Santos announced plans to trim 10% of its workforce and launched a full review of its Australian oil and gas operations. “Zero value” is what the market is giving some undeveloped projects, Barrenjoey’s Dale Koenders noted. Jarden’s take: the layoffs signal a push for leaner costs. Reuters
Yet there’s a hitch in the rally. The International Energy Agency projects global supply will outpace demand, on average, in 2026. Monica Guerra of Morgan Stanley Wealth Management flagged that ongoing oil strength might mean rates stay “higher for longer” — a combination that benefits producers but drags on the broader market. Reuters
