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?
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.
