The Woodside Energy Group Ltd (ASX: WDS) share price is having a rough day on the market today.
The energy giant's shares have descended 4.42% and are currently trading at $30.51. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.03% today.
Let's take a look at what could be weighing on the Woodside share price today.
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Oil prices sink
Woodside shares are sliding, but it is not the only oil and gas producer in the red. The Beach Energy Ltd (ASX: BPT) share price is tumbling 5.47% today, while Santos Ltd (ASX: STO) shares are down 4.36%. For context, the S&P/ASX 200 Energy Index (ASX: XEJ) is also down 5% to 9,609.3 points.
Investors could be reacting to plunging oil prices in US markets. Oil prices descended to a four-week low on Friday. The WTI crude oil price tumbled a mammoth 6.8% to US$109.56 a barrel while benchmark Brent crude oil plummeted 5.6% to US$113.12 a barrel.
Recession fears in the US and a stronger US dollar may have impacted oil prices, Reuters reported. A higher US dollar makes oil more expensive for those reliant on non-US currencies. OANDA senior market analyst Edward Moya said:
Crude prices tumbled as the dollar rallied, Russia signaled oil exports should increase, and as global recession fears grow.
Oil prices are now recovering slightly in Asian markets today with Brent crude up 0.77% to US$110.40 a barrel, while WTI crude oil is rising 0.77% to $113.99 a barrel, Bloomberg data reveals.
Falling natural gas prices could also be impacting gas producers including Woodside. The natural gas price has dropped 3.36% to US$6.71 MMBtu, according to Bloomberg.
Meanwhile, analysts at JP Morgan have recently predicted significant upside for the Woodside share price. The broker has recently placed a $37 price target on the company's shares, a 21% upside. Analysts are also tipping Woodside to pay US$20 billion in dividends over the next decade.
Woodside share price snapshot
Despite today's fall, the Woodside share price has surged nearly 32% in the past year. Year to date, it has leapt close to 40% alone.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed 12% over the past year.
