Here's why the Santos (ASX:STO) share price is falling again on Thursday

Santos has officially handed back this week's gains

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The Santos Ltd (ASX: STO) share price is continuing to slide for the third day in a row despite no news having been released by the company.

At the time of writing, the Santos share price is $6.77. That's 2.17% lower than it was at yesterday's close. The three-day fall comes after the shares climbed 3% on Monday.

That brings the stock's total fall since Friday's close to around 1%.

For context, the S&P/ASX 200 Index (ASX: XJO) is also down today, having dipped 1.05%.

Further, the S&P/ASX 200 Energy Index (ASX: XEJ) is moving in line with the Santos share price. Right now, it has fallen 2.4%, crowning the energy sector as the worst-performing ASX sector today.

Let's take a look at what might be weighing on the oil and gas producer's shares – and those of its peers – on Thursday.

Miner with thumbs down

Image source: Getty Images

Why is the Santos share price falling on Thursday?

The Santos share price isn't alone in its flop today. It was joined overnight by the price of oil.

While oil prices dipped while Australia slept, they are seemingly recovering this morning.

According to reporting by Reuters, Brent crude futures fell 2.5% to US$82.64 a barrel last night. Meanwhile, West Texas Intermediate crude futures dipped 3.3% to trade at US$81.34 per barrel.

Right now, Brent crude futures is sitting at US$82.72 and West Texas Intermediate crude futures is US$81.61.

The commodities' prices were reportedly affected by increased inflation in the United States – alongside stocks trading on US markets.

The nation's inflation has increased 6.3% over the 12 months ended October. Such a surge in inflation reportedly might spur officials to increase rates.

In other news, Santos' merger with Oil Search Ltd (ASX: OSH) could be about to pass a milestone today as the latter fronts a court in Papua New Guinea to find out if has received approval for the transaction.

The court date was previously delayed until yesterday. However, when yesterday arrived it was pushed back to today at the request of the Papua New Guinea National Court.

Today's dip included, the Santos share price is currently 9.7% lower than it was this time last month. However, it has gained around 8% since the start of 2021.

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 Bruce Jackson.

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