Why is the Woodside share price on the back foot today?

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

Woodside shares are down 2.74% and are currently fetching $35.83. For perspective, the
S&P/ASX 200 Index (ASX: XJO) is falling 0.86% today.

Let’s take a look at what is weighing on the Woodside share price today.

What’s going on?

Woodside is not the only ASX energy share sliding today. The Santos Ltd (ASX: STO) share price is down 3.12%, while Beach Energy Ltd (ASX: BPT) is slipping 2.29%. The S&P/ASX 200 Energy Index (ASX: XEJ) is descending 3.12% today.

Woodside is an oil and gas producing giant. The brent crude oil price has dropped 1.27% to US$83.26 a barrel, according to Bloomberg Energy. WTI crude oil has also fallen 0.51% to US$78.56 a barrel.

Chinese demand concerns, a potential US Federal Reserve rate hike and lower trading volumes appear to be weighing on the minds of investors. Commenting on the oil price, UBS analyst Giovanni Staunovo said in quotes cited by Reuters:

My sense is the general risk-off mood has weighed on the oil prices, in a market with thin liquidity.

Meanwhile, the natural gas price has tumbled a massive 10.85% to US$4.71 per MMBtu.

Woodside is estimating that it will produce 180 to 190 million barrels of oil equivalent (MMboe) in 2023. This includes:

• 83 to 85 MMboe of liquefied natural gas
• 40 to 42 MMboe of pipeline gas
• 50 to 55 MMboe of crude and condensate oil
• 7 to 8 MMboe of natural gas liquids.

Woodside share price snapshot

The Woodside share price has surged 61% in the last year.

For perspective, the ASX 200 has shed 6.45% in the last year.

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

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More reading

• Should I pounce on Woodside shares now – or keep waiting?
• Why Dreadnought, Pointsbet, Rio Tinto, and Woodside shares are pushing higher
• 5 things to watch on the ASX 200 on Wednesday
• What can ASX 200 investors learn from Warren Buffett’s big moves in 2022?
• 5 things to watch on the ASX 200 on Friday

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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