Tuesday proved to be a bad day for S&P/ASX 200 Index (ASX: XJO) energy shares.
The S&P/ASX 200 Energy Index (ASX: XEJ) tumbled to close 3.1% lower despite oil prices hitting new multi-year highs.
For context, the broader market also suffered today, with the ASX 200 slumping 0.51% and the All Ordinaries Index (ASX: XAO) falling 0.59%.
Let's take a look at what's going on went on with ASX 200 energy producers on Tuesday.
ASX energy stocks fall despite oil prices hitting 7-year high
The ASX 200 energy sector had a disappointing day even as oil prices hit their highest point since 2014.
The price of a barrel of Brent crude oil rose to an intraday high of US$96.26 on Tuesday while West Texas Intermediate hit US$95.17 a barrel, according to data from CNBC.
Reuters reported the increases may have been a reaction to rising tensions between Russia and Ukraine, as fears mount Russia could stage an invasion in coming days.
If Russia was to invade, the flow of oil from Ukraine, a major producer, could be disrupted. This could, in turn, send oil prices above US$100 per barrel, according to Rystad Energy senior oil market analyst Nishant Bhushan.
Interestingly, the energy commodity's price surge wasn't enough to boost ASX 200 energy shares today.
What dragged on ASX 200 energy shares on Tuesday?
The major weight on the energy index today was the Beach Energy Ltd (ASX: BPT) share price. It fell 10.46% over Tuesday's session.
As The Motley Fool Australia's Zach Bristow reported, its tumble was likely a delayed reaction to the release of the energy producer's half-yearly earnings yesterday.
Bristow reported the company failed to hit market and broker expectations, posting earnings per share (EPS) of just 9.34 cents – notably lower than analyst forecasts of 10.62 cents.
Meanwhile, the Santos Ltd (ASX: STO) share price fell 4.15% on the eve of its full-year earnings release.
It will, of course, be the first time the company reports after it merged with Oil Search in December.
Paladin Energy Ltd (ASX: PDN) rounded out the 3 worst performing large-cap energy stocks in today's session. Its share price tumbled 4.14%.
While there's no clear reason as to why all ASX 200 energy shares slipped lower today, it could represent a market correction after the index surged 3.3% on Monday.
At market close on Tuesday, the ASX 200 energy index is 12.56% higher than it was at the start of 2022. For comparison, the ASX 200 has fallen 3.19% over the same period.
