Australian energy stocks jump as Citi stays positive on improved commodity prices
XLE•Australian energy stocks rose as much as 1.9%, with Woodside Energy up 2% and Santos up 2.6%. Citi sees double-digit core earnings growth for both companies over calendar 2026, citing a constructive commodity price environment.
1. Energy stocks rise
Australia’s energy sub-index rose as much as 1.9%, its highest level since September 18, and was on track for its best session since October 2. The sector gained alongside oil prices, as attacks on Saudi Arabia outweighed the prospect of increased supplies. The sub-index was up 31.5% year to date.
2. Citi sees earnings growth
Citi sees double-digit core earnings growth over calendar 2026 for Woodside Energy and Santos. It sees free cash flow growth from Santos’ Barossa and Pikka projects, while saying Woodside can leverage high global gas prices; investor attention is focused on successful commissioning of Woodside’s Scarborough project.
