Home / Sector / Energy Shares / Why is the Woodside share price in the red today?

Why is the Woodside share price in the red today?

We check what weighed on the oil and gas operator's shares today.

Posted by
Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
Published
| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Woodside shares dropped more than 3% today 
  • Oil prices in US markets fell amid fears of a US Federal Reserve rate hike 
  • The ASX 200 energy index also finished in the red today 

The Woodside Energy Group Ltd (ASX: WDS) share price finished in the red today.

The energy giant's shares fell 3.09% to close at $31.97 each. For perspective, the S&P/ASX 200 Index (ASX: XJO) descended 1.27% today.

So why did the Woodside Energy share price have such a tough day?

Close up of a miner wearing a hard hat with a solemn look on his face, with an oil drill in the background.

Image source: Getty Images

Energy shares slide

Woodside shares dropped today but they were not alone among oil producers. The Beach Energy Ltd (ASX: BPT) share price slumped 3.13% while Santos Ltd (ASX: STO) shares slipped nearly 1%. The S&P/ASX 200 Energy Index (ASX: XEJ) also fell 2.41% today.

Oil prices in the US slumped overnight amid fears of a US Federal Reserve interest rate hike.

In comments cited by Reuters, Again Capital LLC partner John Kilduff suggested these interest rate fears are impacting oil prices. He said:

This fear of an even greater basis point hike is driving down equities and oil.

The US Senate Finance Committee chair Ron Wyden is also planning to introduce a law targeting a 21% tax on excess profits of oil and gas companies earning more than $1 billion of revenue per year, the publication reported.

Brent crude oil futures dropped 0.9% to $1.21.17 a barrel in US markets overnight. However, oil prices have since recovered, with Brent crude oil up 0.29% to $121.52 a barrel. However, Tokyo crude oil is still down 2.11%.

In recent news, Woodside has worked with industry associates to develop a new offshore caisson cleaning and inspection tool (CCAIT system). This enables remote inspection of pivotal equipment on offshore platforms. Executive vice president technical services Daniel Kalms said:

The CCAIT system removes the costs of mobilising tools from international locations, including the cost of delay in fractured supply chains. These can represent up to 50% of the total cost of an inspection campaign.

Woodside share price snapshot

The Woodside share price has risen more than 35% in the past year, while it is up more than 46% year to date.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has returned around 20% in the past year.

Motley Fool contributor Monica O'Shea 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 Scott Phillips.

More on Energy Shares

Hand holding out coal in front of a coal mine.
Energy Shares

Buying Whitehaven Coal shares? Here's how the miner just locked in $853 million in funding

| Bernd Struben

Whitehaven Coal revealed a major funding boost intended to reduce costs.

Read more »

Oil worker giving a thumbs up in an oil field.
Energy Shares

Why is this ASX energy stock plunging today?

| Cameron England

A big capital raise will have this company cashed up.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Energy Shares

Up 635% in one year, guess which ASX energy share is rocketing again on Friday

| Bernd Struben

Investors are bidding up this surging ASX energy share again today. But why?

Read more »

Young woman dressed in suit sitting at cafe staring at laptop screen with hands to her forehead looking tense.
Energy Shares

ASX 200 energy shares whipsaw amid fragile ceasefire

| Bronwyn Allen

ASX 200 energy shares are leading the market today after a substantial sell-off yesterday.

Read more »

Falling prices of oil demonstrated by a red arrow and barrels of oil.
Energy Shares

ASX shares to watch as oil price crashes

| Samantha Menzies

The turnaround in oil prices is a huge headwind for the ASX shares.

Read more »

Red arrow going downwards in front of oil pumpjacks.
Energy Shares

Why are Santos and Woodside shares crashing today?

| James Mickleboro

Let's see what is weighing on these shares on Wednesday.

Read more »

A Santos oil and gas company employee stands in a field looking at an iPad with an oil rig in the background and grey skies above, representing carbon in the atmosphere.
Energy Shares

Santos shares sink 5% despite another strong Alaska result

| Aaron Teboneras

Santos shares fall despite strong Alaska oil appraisal and project progress.

Read more »

An oil worker holds his hands in the air in celebration in silhouette against a seitting sun with oil drilling equipment in the background.
Energy Shares

4 reasons why Woodside shares are a screaming buy right now

| Samantha Menzies

The oil and gas giant's shares have rallied off the back of tighter global oil supply.

Read more »