This year has not been kind to the Woodside Petroleum Limited (ASX: WPL) share price. The Aussie energy share is down 14.4% year to date including a 2.5% drop since Monday morning.
So, what's moving the Aussie oil and gas producer's market capitalisation right now.
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It's been a tough week for the Woodside Petroleum share price
Interestingly, the Aussie energy share has been slipping despite oil prices climbing. It's been a broadly positive week for crude oil with declining inventories and a weakening US dollar providing tailwinds to the key commodity.
In contrast, the Woodside share price is down 2.5% this week despite edging higher on Wednesday. There have been no significant announcements from the company since its August FY21 half-year results release.
One potentially big driver is the proposed merger with BHP Group Ltd (ASX: BHP)'s petroleum division. News of the mega-merger, which would create a global top 10 independent energy company, was one of the biggest items to come out of the August earnings season.
Investors could be looking ahead to the plan which Woodside CEO Meg O'Neill is hoping can deliver US$400 million in synergies. The Woodside share price slipped throughout August and news of the merger did little to boost the company's value.
ASX energy shares have struggled to make significant gains in 2021 and Woodside is no exception. However, hopes that COVID-19 restrictions may ease could be a boon for the Aussie oil and gas giant.
Expectations for an economic recovery and easing border closure make the Woodside share price worth watching in the weeks ahead.
Foolish takeaway
The Woodside share price has had another tough week on the markets. Shares in the Aussie energy group have slid lower despite positive signs for crude oil prices.
The merger with BHP's petroleum division looms as the big driver of potential value for the oil and gas giant in the short to medium term.
