The S&P/ASX 200 Index (ASX: XJO) is having a pretty dreary day so far this Tuesday. At the time of writing, the ASX 200 is down by 0.8% at just under 7,100 points. But that’s nothing compared to the woes of the Woodside Petroleum Limited (ASX: WPL) share price.
This ASX 200 energy share is vastly underperforming the index during today’s trading session thus far. As it currently stands, the Woodside share price has plunged by 4.26% and is currently sitting at $30.56 a share. That’s now down close to 10% from the new 52-week high that we saw only last week.
So what’s going on with Woodside?
Well, we can’t be certain, seeing as there is no official news or announcements that have come out of the company itself. But there is a strong possibility that this share price fall is related to the commodity that Woodside is in the business of extracting. That would be crude oil of course.
Woodside shares fall amid oil price plunge
As my Fool colleague James covered early this morning, global oil prices have taken a battering. According to Bloomberg, West Texas Intermediate (WTI) crude is down by more than 4% at under US$100 a barrel, going for US$98.69 at the most recent pricing. Brent crude has also fallen and is now at US$102.75.
That is a massive drop from the recent spikes we have seen that pushed Brent oil close to US$140 a barrel at one point. While that might be good news for motorists, it would certainly not be welcomed at Woodside.
These more recent moves down from the historical highs we saw earlier this month are probably responsible for the falls we have seen with Woodside and other ASX 200 energy shares over the past week or so.
Certainly Woodside isn’t the only energy share feeling the heat today. Beach Energy Ltd (ASX: BPT) shares are currently down by 4.98% at $1.525 each, while Santos Ltd (ASX: STO) has lost 5.3% at $7.15.
At the current Woodside Petroleum share price, this ASX 200 energy share has a market capitalisation of $29.6 billion, with a dividend yield of 5.85%.
The post Why is the Woodside (ASX:WPL) share price plunging today? appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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