A message from our CIO, Scott Phillips:
"G'day Fools. If you're like us, you're dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we'll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine."
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The Woodside Petroleum Limited (ASX: WPL) share price is falling today after oil prices crashed overnight.
Global oil prices nosedived after the United Arab Emirates (UAE) expressed support for increasing output into the market.
A report on CNN said the UAE intended to encourage the Organization of the Petroleum Exporting Countries (OPEC) to ramp up supply.
As a result, the Brent crude oil price fell 13.16% to US$111.14 a barrel, according to Bloomberg. The drop was the 'worst one-day decline since 21 April 2020', a report on NAB trade stated.
Woodside shares are currently trading at $31.75, a 4.3% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1% today.
Meanwhile, Woodside CEO Meg O'Neill has shared her insights into the global energy market.
Image source: Getty Images
Like the 1970s oil crisis, says Woodside boss
O'Neill says the shift in global energy dynamics due to the Ukraine war felt like a change "that will be with us for decades".
Speaking at yesterday's Australian Financial Review Business Summit in Sydney, O'Neill added:
Maybe the analogy is the 1970s oil crisis, which was a real wake-up call for the world that being highly dependent on energy from one particular nation, whose values may not be well aligned with yours, was a huge risk.
And so I think the world is going to have some real sober reflection on the pathway to diversify energy supply, and will look to countries like the US and like Australia, to see how they can support like-minded countries in providing their energy.
The NAB trade report said the US is in discussions about relaxing oil sanctions on Venezuela. This would be conditional on Venezuela shipping oil directly to the US.
Woodside share price snapshot
The Woodside share price has rocketed 27% over the past year. In 2022, it is up 40%.
In the past month, Woodside shares have gained 19% as the war in Ukraine creates global fear about energy supply.
Woodside has a market capitalisation of about $32.19 billion based on its current share price.
