Santos shares have continued to fall for the start of this week.
The post Why did the Santos share price sink 6% today? appeared first on The Motley Fool Australia. –
The Santos Ltd (ASX: STO) share price fell on Monday despite the company not releasing any announcements on the ASX.
At market close, the energy producerâs shares finished 6.03% lower to $7.32 apiece.
This means Santos shares have now lost more than 14% since this time last week.
Letâs take a look at what could be impacting the energy producerâs shares.
Why are Santos shares cooling off?
Investors are offloading the Santos share price following a broader fall across theÂ S&P/ASX 200 Energy (ASX: XEJ) index today.
Comprising 11 companies that operate in the oil, gas and coal sector, the index backtracked 5.34% to 9,574.6 points.
Interestingly, the benchmark energy index is down a mammoth 13% in the past week.
This comes after the Federal Reserveâs decision to hand down a 0.75% interest rate hike that spooked financial markets.
A more aggressive monetary tightening policy to combat high inflation levels sparked worry about an impending recession in 2023.
Furthermore, the West Texas Intermediate (WTI) has dipped 10% from 8 June to currently US$110 per barrel.
With oil prices backtracking, this will likely put a squeeze on Santosâ margins along with its peers.
Shares in fellow rival, Woodside Energy Group Ltd (ASX: WDS) also closed the day 4.86% lower.
Santos share price snapshot
Itâs been a rollercoaster 12 months for the Santos share price, registering nil gains for the period.
Itâs worth noting that the companyâs shares reached a 52-week low of $8.86 on 8 June before tumbling 17% to today’s price.
In terms ofÂ market capitalisation, Santos is the second biggest energy company on the ASX with a valuation of approximately $26.24 billion.
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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.