Australia's oil and gas producers are getting absolutely hammered today, especially Santos Ltd (ASX: STO) which has fallen 11.6% to just $3.37 per share.
Santos's share price was smothered after the rout in crude oil prices worsened overnight after the Organisation of Petroleum Exporting Countries, or OPEC, failed to ease the global supply glut.
Brent crude oil, which is considered the global benchmark, was smashed 4.9% to US$40.90 a barrel, while West Texas Intermediate (WTI), which is the benchmark in the United States, settled 5.8% lower. As highlighted by The Australian Financial Review, that was the lowest settlement price since February 2009 while there are fears conditions could continue to worsen from here.
Santos wasn't the only energy producer getting poleaxed today. The Woodside Petroleum Limited (ASX: WPL) share price fell 3.6%, the Oil Search Limited (ASX: OSH) share price fell 15.6% and Sundance Energy Australia Ltd's (ASX: SEA) share price collapsed 11%.
That's not all. AWE Limited (ASX: AWE) shares retreated 7.4%, while Liquefied Natural Gas Ltd (ASX: LNG) and BHP Billiton Limited (ASX: BHP) shares crashed 12.9% and 4.2% respectively. BHP Billiton's share price is now sitting at just $17.24 and almost fell below $17 a share earlier in the session.
With conditions expected to remain volatile, investors would be wise to avoid the sector altogether and focus on other opportunities instead.
