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

Santos has officially handed back this week’s gains

| More on:
Miner with thumbs down

Image source: Getty Images

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.

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.

Should you invest $1,000 in Santos right now?

Before you consider Santos, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Santos wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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.

More on Energy Shares

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the 30% increase in Pure Hydrogen's share price today
Energy Shares

Why the Pure Hydrogen (ASX:PH2) share price is rocketing 30% today

Key points Pure Hydrogen stock is soaring on the ASX today The company has entered a joint venture in India …

Read more »

An oil miner with his thumbs up.
Energy Shares

Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?

Key points AGL was one of the worst performing ASX 200 shares of 2021 But 2022 has given this company …

Read more »

a smiling woman holds up two fingers and winks.
Share Gainers

Top 2 ASX 200 shares of the year so far revealed

S&P/ASX 200 Index (ASX: XJO) shares as a whole haven’t gotten off to the strongest of starts in 2022. After …

Read more »

A man in suit and tie is smug about his suitcase bursting with cash.
Energy Shares

Is Santos (ASX:STO) about to enjoy a $3 billion payday?

Owners of Santos Ltd (ASX: STO) shares might want to keep an eye on the company’s Papua New Guinea assets …

Read more »

Businessman walks through exit door signalling resignation
Energy Shares

Woodside (ASX:WPL) share price slightly retraces following Myanmar withdrawal

Key Points Woodside shares remain in positive territory amid management decision to end investment in Myanmar Political unrest along with …

Read more »

oil can falling over and spilling coins signifying fall in oil share prices
Energy Shares

Why are ASX 200 energy shares tumbling on Tuesday?

Key points The ASX 200 energy shares make up the worst performing sector on Tuesday They’re likely being weighed down …

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Earnings Results

Beach Energy (ASX:BPT) share price tumbles 7% on production slide

Key points The Beach Energy share price is under pressure Production levels fell quarter on quarter Higher oil prices helped …

Read more »

Two miners standing together with a smile on their faces.
Resources Shares

Two top ASX 200 mining shares to watch in 2022: Saxo Markets

Key points These 2 ASX 200 miners have trounced the index in 2022 A strong outlook for iron ore could …

Read more »