Here’s why the Oil Search (ASX:OSH) share price is slipping today

Here’s all that might be weighing on the energy producer’s stock.

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barrel of oil sitting on top of falling red arrow representing asx energy shares downgrade

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Monday is proving to be a challenging day on the ASX for the Oil Search Ltd (ASX: OSH) share price.

The company’s stock is dipping alongside those of its peers and the price of oil. Additionally, reports have emerged stating that the company is being sued by its former chief financial officer.

At the time of writing, the Oil Search share price is $4.12, 1.9% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently sporting a 0.4% fall.

Let’s take a look at what might be dragging the company’s share price today.

Oil Search share price tumbles

Oil Search’s stock is suffering as the price of oil hits its lowest point in 7 weeks.

According to data from CNBC, the price of West Texas Intermediate oil is sitting at US$75.94 per barrel right now. At the same time, barrels of Brent crude oil are trading at US$78.85.

As Reuters has reported, the fall in oil prices comes as COVID-19 cases in the Northern Hemisphere surge, seemingly harbouring a fourth wave.

At the same time, the globe’s biggest economies are reportedly considering releasing oil stockpiles in an attempt to combat energy prices.

Oil Search isn’t alone in its falls today. Unsurprisingly, other oil-producing companies are also in the red.

The share prices of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are down 1.8% and 1.9% respectively.

Meanwhile, that of Beach Energy Ltd (ASX: BPT) has slid 4%.

Finally, while it’s unlikely to be moving the Oil Search share price, reports emerged last week claiming the company’s former CFO is suing the company on allegations of bullying, intimidation, and harassment.

Ayten Saridas lasted just 3 months in the role in late 2020.

According to reporting by The Australian, Oil Search has denied the claims and stated it will defend against the accusations.

Right now, the Oil Search share price is 9.5% higher than it was at the start of 2021.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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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