Why is the Woodside share price sliding today?

Oil prices appear to be weighing on ASX energy shares today.

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Key points

  • Woodside shares are down more than 2% today 
  • Oil prices suffered overnight, reportedly due to gasoline and distillate inventories rising 
  • Other ASX energy shares descending today include Santos and Beach Energy 

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

Woodside shares are currently swapping hands at $31.97 apiece, a 2.59% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.76% today.

So what is going on with this ASX oil and gas share?

Oil prices slide

Woodside shares are down today, but they are not alone among ASX energy shares. The Santos Ltd (ASX: STO) share price is down 0.73%, while the Beach Energy Ltd (ASX: BPT) share price is falling 3.07%. The S&P/ASX 200 Energy Index (ASX: XEJ) is declining 1.77% at the time of writing.

The Woodside share price appears to be falling amid declining oil prices in global markets overnight.

WTI crude oil price dropped 2.1% to US$109.37 a barrel, while Brent crude oil fell 2.4% to US$115.20 a barrel.

The oil price fell amid rising US gasoline and distillate inventories, Reuters reported. The rise in the US dollar also had an impact, according to the news agency. A higher US dollar means oil costs more for those purchasing with alternative currencies.

A report from the Energy Information Administration in the United States put a “damper on the market”, according to Again Capital LLC partner John Kilduff. In quotes cited by Reuters, he said:

The rise in gasoline and distillate inventories eases the pressure a bit and the uptick in US production also factored into the price decline.

Woodside merged with BHP Group Ltd (ASX: BHP)’s oil and gas portfolio at the beginning of June, making it a top-10 global energy company by hydrocarbon production. The company also recently listed on the London and New York stock exchanges under the ticker WDS.

Woodside’s New York listing descended 1.56% overnight, while the London listing fell 1.09%.

Woodside share price snapshot

The Woodside share price has exploded 44% in the past year while it has surged ahead 46% in the year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has descended 9% over the past year.

Woodside has a market capitalisation of about $60.9 billion based on today’s share price.

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.

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