The Santos Ltd (ASX: STO) share price fell on Monday despite the company not releasing any announcements on the ASX.
At market close, the energy producer’s shares finished 6.03% lower to $7.32 apiece.
This means Santos shares have now lost more than 14% since this time last week.
Let’s take a look at what could be impacting the energy producer’s shares.
Why are Santos shares cooling off?
Investors are offloading the Santos share price following a broader fall across the S&P/ASX 200 Energy (ASX: XEJ) index today.
Comprising 11 companies that operate in the oil, gas and coal sector, the index backtracked 5.34% to 9,574.6 points.
Interestingly, the benchmark energy index is down a mammoth 13% in the past week.
This comes after the Federal Reserve’s decision to hand down a 0.75% interest rate hike that spooked financial markets.
A more aggressive monetary tightening policy to combat high inflation levels sparked worry about an impending recession in 2023.
Furthermore, the West Texas Intermediate (WTI) has dipped 10% from 8 June to currently US$110 per barrel.
With oil prices backtracking, this will likely put a squeeze on Santos’ margins along with its peers.
Shares in fellow rival, Woodside Energy Group Ltd (ASX: WDS) also closed the day 4.86% lower.
Santos share price snapshot
It’s been a rollercoaster 12 months for the Santos share price, registering nil gains for the period.
It’s worth noting that the company’s shares reached a 52-week low of $8.86 on 8 June before tumbling 17% to today’s price.
In terms of market capitalisation, Santos is the second biggest energy company on the ASX with a valuation of approximately $26.24 billion.