Why is the Beach Energy share price sinking on Thursday?

Thursday is proving to be a rough session for the Beach Energy Ltd (ASX: BPT) share price.

The oil and gas producer is sinking alongside the value of the black liquid.

The Beach Energy share price is trading at $1.64 at the time of writing. That’s 1.8% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is trading higher today, gaining 0.89% right now.

Let’s take a closer look at what’s going wrong for the ASX 200 energy giant’s stock.

Beach Energy share price tumbles alongside oil

The Beach Energy share price is suffering alongside many of its ASX 200 peers today after energy commodity prices tanked overnight.

The S&P/ASX 200 Energy Index (ASX: XEJ) is down 3.67% right now, with Beach Energy coming in as its second-worst performer.

Taking the unfortunate lead is none other than Woodside Energy Group Ltd (ASX: WDS). Its share price has plummeted 6.42% right now.

Their suffering follows a disastrous night for oil prices.

The Brent crude oil price fell 5.2% to US$88 a barrel while most of Australia slept – marking a new seven-month low.

Meanwhile, the US Nymex crude oil price dumped 5.7% to hit US$81.94 a barrel – its lowest point since January.

The downturn was driven by recession concerns bolstered by disappointing Chinese trade data, Reuters reports.

It was reportedly worsened by a strengthening of the US dollar against the Japanese yen and the pound sterling. That makes oil more expensive for those trading in the currencies.

Joining the Beach Energy share price in the red today are fellow energy shares Santos Ltd (ASX: STO), Worley Ltd (ASX: WOR), and Viva Energy Group Ltd (ASX: VEA). They’ve fallen 1.3%, 0.75%, and 0.36% respectively.

Most other ASX 200 energy shares are trading in the green at the time of writing.

The post Why is the Beach Energy share price sinking on Thursday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday
• Blocked again: Here’s what happened to ASX 200 shares last time the Suez was cut off
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Brooke Cooper 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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