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 the 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 of market capitalisation, Santos is the second biggest energy company on the ASX with a valuation of approximately $26.24 billion.
The post Why did the Santos share price sink 6% today? appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of January 12th 2022
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
Why Bega, Fortescue, Santos, and Silver Lake shares are tumbling lower
ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
5 things to watch on the ASX 200 on Monday
Santos share price ‘a compelling opportunity’: fundie
2 energy ASX shares to buy while inflation is killing everything else: expert
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.
