Why are Beach, Santos and Woodside share prices tumbling today?

Energy producers Santos Ltd (ASX: STO), Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS)

The Beach Energy share price is sliding 1.33% today, while the Woodside share price is descending 1.71%. Meanwhile, Santos shares are down 1.22%.

The Woodside share price fell 2.9% in earlier trade before recovering some of these losses. Santos shares also dropped 2.86% and Beach fell 3.56% before pulling back.

Let’s take a look at what is impacting these companies today.

Oil prices fall

Santos, Woodside and Beach Energy are all major oil producers. Oil prices plunged more than 7% overnight amid China COVID-19 restrictions, US inventory build up and the potential for more supply.

Brent crude oil prices fell 7.1% to $99.49 a barrel, while West Texas Intermediate (WTI) oil plunged 7.9% to $95.84 a barrel on Tuesday in the US, the New York Times reported.

Oil prices continued to fall in early trading in Asian markets on Wednesday. Reuters reported COVID-19 restrictions in China and US inventory build-up were contributing to this fall. Crude oil stocks jumped by 4.8 million barrels last week, the publication reported.

In a research note this morning, ANZ economist Madeline Dunk explained “concerns about demand increased amid the prospects of an economic slowdown and growing COVID-19 cases in China.”

Commenting on the tumbling crude oil price, she added:

The pessimistic outlook for oil was compounded by the prospect of more supply.

US President Joe Biden is scheduled to visit Saudi Arabia this week during a tour of the Middle East. He’s expected to ask the oil producer to increase production.

Brent Crude oil prices are now recovering according to Bloomberg, up 0.17%. Meanwhile, WTI crude oil prices are still down 0.07%.

Share price summary

The Woodside share price has soared nearly 39% year to date, while Santos shares have jumped 9%. Beach Energy shares have leapt 32% so far this year.

Woodside has a market capitalisation of nearly $57 billion, while Santos has a market cap of about $23 billion compared to $3.8 billion for Beach Energy.

The post Why are Beach, Santos and Woodside share prices tumbling today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• Why are ASX 200 energy shares underperforming today?
• Is the Santos share price in bargain territory for FY23?
• Can the second half of 2022 be even better for the Woodside share price?
• How does the Woodside dividend compare to Santos over the last 5 years?

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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