The Woodside Petroleum Limited (ASX: WPL) share price is slipping today amid news the price of oil plunged last night.
On Sunday (Monday AEST), OPEC announced it will be adding more oil supplies to the global market.
As The Motley Fool Australia reported earlier today, the WTI crude oil price flopped 7.6% overnight to reach US$66.34 a barrel, while the Brent crude oil price fell 6.9% to hit US$68.52 a barrel.
Woodside Petroleum's shares have moved in tangent, tumbling 1.81% to trade for $21.92 at the time of writing.
Let's take a closer look at how the OPEC decision is affecting the Woodside Petroleum share price today.
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Price of oil falls
The Woodside Petroleum share price is tracking downwards today as the price of oil reacts to news supply will be increased.
According to reporting by Bloomberg, OPEC has agreed to increase its output of oil by 40,000 barrels per day every month from August.
Doing so will reverse the current production cuts on the fossil fuel by September 2022. Right now, OPEC is withholding 5.8 million barrels of oil a day.
Sunday's surprise announcement from OPEC follows a truce between Saudi Arabia and the United Arab Emirates. The two nations had previously disagreed on appropriate supply levels.
Woodside Petroleum is the largest producer of oil and gas in Australia. The squeeze on oil output had benefited the company by sending the price of oil skyrocketing in recent months.
Its share price has tracked roughly alongside the price of oil's dramatic falls and climbs throughout the pandemic. Today looks to be no different.
Woodside Petroleum share price snapshot
The Woodside Petroleum share price has had a rough ride lately.
Right now, it is 5% lower than it was at the start of 2021. However, it is currently 9% higher than it was this time last year.
The company has a market capitalisation of around $21 billion, with approximately 963 million shares outstanding.
