The Woodside Energy Group Ltd (ASX: WDS) share price is heading south on Wednesday despite no announcements from the company.
At the time of writing, the energy producer's shares are swapping hands at $30.28, down 6.66%.
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Why are Woodside shares backtracking on Wednesday?
Investors are offloading the Woodside 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 is shedding 5.55% to 9,593.2 points.
The price of oil slid to around US$100 per barrel as market fears re-emerged regarding a looming recession.
In particular, the West Texas Intermediate (WTI) has now fallen by almost 10% this week to US$99.99 per barrel.
Furthermore, the US dollar rose overnight as the Federal Reserve raises interest rates to cool down 40-year high inflation levels.
The central bank recently handed down a 0.75% interest rate hike that spooked financial markets. A more aggressive monetary tightening policy to combat inflation is sparking concerns about an impending recession in 2023.
Nonetheless, with oil prices backtracking, this will likely put a squeeze on Woodside's earnings for the short term.
Shares in fellow energy giant, Santos Ltd (ASX: STO) are also treading 4.68% lower to $7.13 apiece.
Woodside share price summary
Despite tumbling today, it has been a positive 12 months for the Woodside share price, up 25%.
When looking at year-to-date, its shares have further accelerated by 38% following the Russian war in Ukraine.
It's worth noting that the company's shares reached a 52-week high of $35.77 last month before tracking slightly lower.
In terms of market capitalisation, Woodside is the largest energy company on the ASX with a valuation of approximately $61.60 billion.
