Shares of Woodside Energy Group Ltd closed higher on Friday, February 20, 2026, buoyed by a rally in global oil benchmarks. The Australian energy producer's stock finished the session at A$27.43, marking a gain of 1.2% for the day. This performance contributed to a positive week for the domestic energy sector, even as the broader S&P/ASX200 index edged down by a marginal 0.05%.
Crude Prices Fuel the Rally
The primary catalyst for the move was a significant uptick in oil prices. Brent crude futures traded near $71.91 per barrel, while U.S. West Texas Intermediate (WTI) hovered around $66.74. These levels represent a climb to approximately six-month highs. Market analysts attributed the surge to a mounting geopolitical risk premium, as traders priced in potential supply disruptions stemming from renewed tensions in the Middle East, specifically concerns over the vital Strait of Hormuz shipping corridor.
"Crude oil prices have edged to six-month highs as concerns over potential supply risks from the Strait of Hormuz keep markets on edge," noted Priyanka Sachdeva, a senior market analyst at Phillip Nova. The anxiety underscores the market's sensitivity to any threat that could impede the flow of hydrocarbons through this critical chokepoint.
Sector Performance and Peer Movement
Woodside's ascent was part of a broader energy sector uplift during the week. Notably, the stock had surged roughly 4% in the prior Thursday's session. However, not all peers followed suit on Friday. Rival Santos Ltd saw its shares decline by 0.9% to A$6.94. This drop occurred despite Santos announcing it had agreed to terms for a significant 10-year gas sales agreement with the South Australian government, suggesting company-specific factors or profit-taking may have influenced its price action.
The dichotomy between the two major Australian energy players highlights how macro commodity trends and individual corporate developments can create divergent short-term paths for stocks within the same sector.
Critical Week Ahead: Guidance in Focus
For Woodside, the supportive oil price environment arrives at a pivotal moment. The company is scheduled to release its full-year 2025 annual report and provide a comprehensive operational update on Tuesday, February 24, 2026. This will be followed by an investor briefing and question-and-answer session hosted by acting Chief Executive Officer Liz Westcott and Chief Financial Officer Graham Tiver.
Investors will scrutinize the report not only for financial results tied to the recent strong oil price environment but also for crucial forward-looking guidance. In late January, Woodside signaled that its record 2025 production would be followed by lower output in 2026. This forecast is due to planned maintenance activities, including a major turnaround at its Pluto LNG facility in the second quarter, and the timing of new production volumes from the Scarborough project, which was reported as 94% complete at the time of the update.
Balancing Macro and Micro Drivers
The current setup presents a dual narrative for Woodside shareholders. In the near term, the stock remains tethered to volatile global crude oil headlines, which can shift market sentiment rapidly. Over a longer horizon, the company's own project execution, maintenance schedules, and delivery of new production volumes—such as from Scarborough—will be the dominant factors shaping performance over the coming months.
However, the bullish case supported by geopolitical risk carries inherent volatility. Analysts caution that the risk premium baked into oil prices could dissipate quickly if geopolitical tensions ease over the weekend. Furthermore, underlying physical market fundamentals have not yet signaled a severe shortage. Reports indicate global supply has remained steady and inventories are not at critically low levels, suggesting the recent price spike is largely fear-driven rather than based on a current supply-demand imbalance.
As markets reopen, traders will monitor crude oil futures for direction. Subsequently, attention will turn to Woodside-specific signals: whether investors continue to treat the stock as a preferred local proxy for higher energy prices, or if the rally pauses as participants adopt a wait-and-see approach ahead of next week's pivotal results and guidance.
