SYDNEY, March 20, 2026, 09:16 AEDT
Santos Ltd climbed 3.2% on Thursday, finishing at A$8.02 after reaching an intraday high of A$8.06—right at the upper end of its 52-week range. A renewed oil and gas jolt steered investors toward Australian energy stocks. This played out as the S&P/ASX 200 dropped 1.7% to hit its lowest in four months. 1
This surge is significant for Santos, a seller of both crude and LNG—liquefied natural gas cooled for export. Brent crude touched $119.13, later closing at $108.65 on Thursday. European gas prices, meanwhile, soared up to 35% following strikes on Gulf energy infrastructure. 2
SEB’s Ole Hvalbye flagged that more strikes on energy infrastructure are likely to push oil and gas prices higher. According to Reuters, two LNG trains at Qatar’s Ras Laffan were destroyed, slashing around 17% from the country’s LNG export capacity for anywhere from three to five years. MST Financial’s Saul Kavonic described the fallout as a step toward a “doomsday gas-crisis scenario.” 3
Santos was one of the scarce gainers on the local board. Woodside Energy jumped 7.2%, while Ampol picked up 4.6%. Those moves pushed the Australian energy index up 5.1%, its strongest level in over two years. “Volatility is not going away as long as the war drags on and energy prices keep swinging,” said Atlas Funds Management portfolio manager Phil Cornet. 4
Santos arrived at the rally touting its own expansion plans. Back in January, the company projected that Barossa gas and initial oil flows from Alaska’s Pikka project could push 2026 output up by as much as 30%. CEO Kevin Gallagher put the combined boost from both projects at “around 25 to 30 per cent” by 2027 compared with 2024. Citi’s Tom Wallington pointed out that shipping the first cargo from the revived Darwin LNG facility might calm worries that the restart had revealed deeper issues. 5
Santos delivered a disappointing annual performance. Back in February, the company reported 2025 underlying earnings down 25% to $898 million—coming up short of forecasts—and outlined plans to trim headcount by 10% as it reconsiders its Australian oil and gas portfolio. Dale Koenders, who leads energy research at Barrenjoey, noted the market is giving “zero value” to some of the firm’s undeveloped assets. 6
Still, it’s not a one-direction market. Goldman Sachs, in a note Thursday, said its main scenario points to oil flows starting to recover from April. That would put Brent back in the $70s by the fourth quarter, even though short-term risks could push prices higher. Earlier this month, Reuters calculations and industry analysts pointed out that Australia and the United States lack extra LNG capacity to offset missing Qatari shipments—so, higher prices might boost margins more than actual volumes. 7
Santos finished Thursday up roughly 30% for 2026. Lately, the stock has been tracking war-fueled energy prices and inflation jitters rather than following the broader Australian market. 8
