The Woodside Energy Group Ltd (ASX: WDS) share price finished in the red today.

The energy giant’s shares fell 3.09% to close at $31.97 each. For perspective, the S&P/ASX 200 Index (ASX: XJO) descended 1.27% today.

So why did the Woodside Energy share price have such a tough day?

Energy shares slide

Woodside shares dropped today but they were not alone among oil producers. The Beach Energy Ltd (ASX: BPT) share price slumped 3.13% while Santos Ltd (ASX: STO) shares slipped nearly 1%. The S&P/ASX 200 Energy Index (ASX: XEJ) also fell 2.41% today.

Oil prices in the US slumped overnight amid fears of a US Federal Reserve interest rate hike.

In comments cited by Reuters, Again Capital LLC partner John Kilduff suggested these interest rate fears are impacting oil prices. He said:

This fear of an even greater basis point hike is driving down equities and oil.

The US Senate Finance Committee chair Ron Wyden is also planning to introduce a law targeting a 21% tax on excess profits of oil and gas companies earning more than $1 billion of revenue per year, the publication reported.

Brent crude oil futures dropped 0.9% to $1.21.17 a barrel in US markets overnight. However, oil prices have since recovered, with Brent crude oil up 0.29% to $121.52 a barrel. However, Tokyo crude oil is still down 2.11%.

In recent news, Woodside has worked with industry associates to develop a new offshore caisson cleaning and inspection tool (CCAIT system). This enables remote inspection of pivotal equipment on offshore platforms. Executive vice president technical services Daniel Kalms said:

The CCAIT system removes the costs of mobilising tools from international locations, including the cost of delay in fractured supply chains. These can represent up to 50% of the total cost of an inspection campaign.

Woodside share price snapshot

The Woodside share price has risen more than 35% in the past year, while it is up more than 46% year to date.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has returned around 20% in the past year.

The post Why is the Woodside share price in the red today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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