Last month was a rough one for the Santos Ltd (ASX: STO) share price despite no news having been directly released by the company.
Though, the S&P/ASX 200 Index (ASX: XJO) energy giant was likely weighed down by falling energy commodity prices.
As of the final close of June, the Santos share price was $7.42 cents. That’s 9.51% lower than it was at the end of May.
For context, the ASX 200 slipped nearly 9% last month.
So, what’s been going wrong for the ASX 200 energy share recently? Let’s take a look.
What happened to the Santos share price in June?
The Santos share price suffered a notable tumble last month despite no news direct from the company.
However, Santos was the talk of the town as an energy crisis unfolded in June. Speaking on the crisis, the company’s CEO Kevin Gallagher was quoted by media as saying:
The scarcity of new developments today is frightening with forecasts of tight supply over coming years … Customers are crying out for this gas with more demand than we can meet when it comes to market around 2026. And I am trying to bring Narrabri to market earlier if that is possible.
Of course, such demand may have helped energy commodity prices spike earlier in the month.
The Australian Energy Market Operator (AEMO) capped gas prices in parts of Australia in mid-June after they reached cumulative high price thresholds. It later implemented and lifted a suspension on the National Energy Market (NEM) wholesale market.
Around that same time, the Santos share price reached a new 52-week high of $8.86.
Additionally, US natural gas futures hit its highest point since 2008 in early June. But that’s behind us now. Gas prices have since retreated to a three-month low, according to Trading Economics.
Meanwhile, oil prices recorded their first monthly decline of 2022 in June. The Brent crude oil price slipped 1.2% to reach US$114.81 a barrel on Thursday while the West Texas Intermediate oil price plunged 3.7% to US$105.76 a barrel.
All this may have weighed on the Santos share price over the last few weeks. Though, the poor month’s performance wasn’t enough to push the ASX 200 energy giant into the longer-term red.
The Santos share price is currently 9% higher than it was at the start of 2022. It has also gained 1.5% since this time last year.