Why is the Santos share price sliding lower today?

The Santos Ltd (ASX: STO) share price is sliding on Wednesday despite no announcements from the company.

At the time of writing, the energy producer’s shares are down 1.51% to $7.85.

Let’s take a look at what could be impacting Santos shares today.

Why are Santos shares cooling off?

Investors are offloading the Santos share price following a broader fall across the S&P/ASX 200 Energy Index (ASX: XEJ) today.

The benchmark index comprising 11 companies operating in the oil, gas and coal sector is retreating 2.52% to 11,038.6 points.

This comes after the oil prices slipped overnight as looming rate hikes from the United States Federal Reserve sparked concerns of an economic slowdown.

The central bank is looking at ramping up its aggressive monetary tightening policy to combat high inflation. Economists are predicting a 0.75% interest rate hike for September.

Currently, the West Texas Intermediate (WTI) is fetching at $92.23 a barrel.

In addition, investors will be watching closely the OPEC+ meeting next Monday. This will likely discuss plans to keep energy prices in check amid soaring inflation.

OPEC meetings are attended by representatives from 13 oil-rich nations and are responsible for 40% of the world’s oil supply.

With oil prices backtracking, this will likely put a squeeze on Santos’ margins and its peers.

Shares in rival Woodside Energy Group Ltd (ASX: WDS) are also falling for the day, down 3.64% to $34.57.

Santos share price summary

It’s been a rollercoaster 12 months for the Santos share price despite recording a 29% gain for the period.

The company’s shares reached a 52-week high of $8.86 on 8 June before capitulating more than 20% in the following weeks.

Since then, the share has risen on the back of the company’s robust half-year results.

Santos presides a market capitalisation of approximately $26.34 billion, making it the second biggest energy company on the ASX.

The post Why is the Santos share price sliding lower today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Beach Energy share price lagging its sector on Tuesday?
• What’s the outlook for the oil price in September?
• What’s boosting the Santos share price on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday
• What’s going on with the Santos share price today?

Motley Fool contributor Aaron Teboneras 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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