We take a look at why the Woodside Energy share price could be struggling today.
The post Why is the Woodside share price sliding on Monday? appeared first on The Motley Fool Australia. –
TheÂ Woodside Energy Group LtdÂ (ASX: WDS)Â share price is having a rough day on the market today.
The energy giantâs shares have descended 4.42% and are currently trading at $30.51. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.03% today.
Letâs take a look at what could be weighing on the Woodside share price today.
Oil prices sink
Woodside shares are sliding, but it is not the only oil and gas producer in the red. TheÂ Beach Energy LtdÂ (ASX: BPT)Â share price is tumbling 5.47% today, while Santos LtdÂ (ASX: STO)Â sharesÂ are down 4.36%. For context, theÂ S&P/ASX 200 Energy IndexÂ (ASX: XEJ) is also down 5% to 9,609.3 points. Â
Investors could be reacting to plunging oil prices in US markets. Oil prices descended to a four-week low on Friday. The WTI crude oil price tumbled a mammoth 6.8% to US$109.56 a barrel while benchmark Brent crude oil plummeted 5.6% to US$113.12 a barrel.
Recession fears in the US and a stronger US dollar may have impacted oil prices, Reuters reported. A higher US dollar makes oil more expensive for those reliant on non-US currencies. OANDA senior market analyst Edward Moya said:
Crude prices tumbled as the dollar rallied, Russia signaled oil exports should increase, and as global recession fears grow.
Oil prices are now recovering slightly in Asian markets today with Brent crude up 0.77% to US$110.40 a barrel,Â while WTI crude oil is rising 0.77% to $113.99 a barrel,Â BloombergÂ data reveals.
Falling natural gas prices could also be impacting gas producers including Woodside. The natural gas price has dropped 3.36% to US$6.71 MMBtu, according to Bloomberg.
Meanwhile, analysts at JP Morgan have recently predicted significant upside for the Woodside share price. The broker has recently placed a $37 price target on the company’s shares, a 21% upside. Analysts are also tipping Woodside to pay US$20 billion in dividends over the next decade.
Woodside share price snapshot
Despite today’s fall, the Woodside share price has surged nearly 32% in the past year. Year to date, it has leapt close to 40% alone.
For perspective, the benchmarkÂ S&P/ASX 200 IndexÂ (ASX: XJO)Â has shed 12% over the past year.
The post Why is the Woodside share price sliding on Monday? appeared first on The Motley Fool Australia.
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’);
5 things to watch on the ASX 200 on Monday
Can Woodside shares deliver an attractive dividend yield AND 16% upside in 2022?
5 things to watch on the ASX 200 on Friday
5 things to watch on the ASX 200 on Thursday
Why is the Woodside share price in the red today?
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.