Shares of Santos Ltd (ASX: STO) have been sold off heavily today, extending on the stock's massive losses in the second half of 2014.
With the oil price now sitting at its lowest level in five-and-a-half years, stocks in the energy sector have been slammed. Since peaking at $15.32 in August last year, the stock has more than halved in value and is now trading at $7.56. It's down 8.5% for the day and if you own shares in the stock, you may want to look away now.
Source: Google Finance
Unfortunately for those shareholders, things could continue to worsen over the coming weeks or months. Given how sharply oil prices fell overnight (Brent oil down 4.9%), there's no sign of it slowing down just yet with some analysts suggesting it will bottom out at US$40 a barrel. That's a further 25% downside from today's price of US$53.65 which could wreak havoc on stocks in the energy sector.
