Energy producers Santos Ltd (ASX: STO), Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS)
The Beach Energy share price is sliding 1.33% today, while the Woodside share price is descending 1.71%. Meanwhile, Santos shares are down 1.22%.
The Woodside share price fell 2.9% in earlier trade before recovering some of these losses. Santos shares also dropped 2.86% and Beach fell 3.56% before pulling back.
Let's take a look at what is impacting these companies today.
Oil prices fall
Santos, Woodside and Beach Energy are all major oil producers. Oil prices plunged more than 7% overnight amid China COVID-19 restrictions, US inventory build up and the potential for more supply.
Brent crude oil prices fell 7.1% to $99.49 a barrel, while West Texas Intermediate (WTI) oil plunged 7.9% to $95.84 a barrel on Tuesday in the US, the New York Times reported.
Oil prices continued to fall in early trading in Asian markets on Wednesday. Reuters reported COVID-19 restrictions in China and US inventory build-up were contributing to this fall. Crude oil stocks jumped by 4.8 million barrels last week, the publication reported.
In a research note this morning, ANZ economist Madeline Dunk explained "concerns about demand increased amid the prospects of an economic slowdown and growing COVID-19 cases in China."
Commenting on the tumbling crude oil price, she added:
The pessimistic outlook for oil was compounded by the prospect of more supply.
US President Joe Biden is scheduled to visit Saudi Arabia this week during a tour of the Middle East. He's expected to ask the oil producer to increase production.
Brent Crude oil prices are now recovering according to Bloomberg, up 0.17%. Meanwhile, WTI crude oil prices are still down 0.07%.
Share price summary
The Woodside share price has soared nearly 39% year to date, while Santos shares have jumped 9%. Beach Energy shares have leapt 32% so far this year.
Woodside has a market capitalisation of nearly $57 billion, while Santos has a market cap of about $23 billion compared to $3.8 billion for Beach Energy.
