The Beach Energy Ltd (ASX: BPT) share price has continued to weaken in November. Shares in the oil and gas company have fallen 15% in value since the beginning of the month.
By the end of Monday’s session, the Beach Energy share price had declined to $1.20, 3.6% lower than its previous close. With no announcements out from the energy company today, we turn to broader events in the oil and gas industry.
Let’s unpack what might have weighed on investor sentiment.
Beach Energy share price hit by falling oil price
While the S&P/ASX 200 Index (ASX: XJO) was in negative territory on Monday, it was a worse sight for the energy sector. The benchmark index finished 0.5% lower, which is disappointing for investors. However, the energy sector slid 1.6%, leaving ASX-listed energy share investors out to dry.
Out of the bunch, the Beach Energy share price was the worst-performing energy company in the index. Following close behind was Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO), and Oil Search Ltd (ASX: OSH).
A falling oil price overnight was to blame for the catalyst behind the sector’s dismal performance to commence the week. According to Bloomberg, the WTI crude oil price fell 3.15% to US$75.94 a barrel. Meanwhile, the Brent crude oil price slipped 2.9% to US$78.89 a barrel.
Although, in the last month Beach Energy has been contending with more than just weakening oil prices. The dispropriate negative performance compared to its peers might stem from a couple of unsettling events this month.
Firstly, rumours were flying on 9 November 2021 of a potential exit of the company’s largest shareholder, Seven Group Holdings Ltd (ASX: SVW). These have since been refuted by Beach Energy’s chair Glenn Davis at the latest annual general meeting.
Secondly, a sudden transition of management might have the market on alert. The chief executive, Matt Kay, tendered his resignation at the beginning of the month. The role has since been temporarily filled with the appointment of Morné Engelbrecht as acting CEO.
These events combined likely have introduced increased volatility to the Beach Energy share price.