The Woodside Energy Group Ltd (ASX: WDS) share price has spent most of Wednesday in the red following a slump in oil prices.
At the time of writing, the ASX energy producer's shares are down 0.09% to $32.01, after dipping to an intraday low of $31.73.
Let's take a look at what's happening with Woodside and the market.
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Woodside shares lose ground as oil price slips
Investors are weighing down the Woodside share price as the price of its key commodity comes under selling pressure.
Currently, West Texas Intermediate (WTI) and Brent crude prices are trading at US$87.10 and US$92.84 per barrel, respectively.
China's central bank cut key lending rates to stimulate demand as data revealed that the economy slowed down in July. The news shocked the market and likely led oil prices to sink to a six-month low.
It appears Beijing's woes are being driven by its strict COVID-19 policy, which has severely impacted factory and retail activity. An ongoing property crisis within the country hasn't helped matters.
The S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.31% today, alongside other energy players.
Shares in fellow energy giant Santos Ltd (ASX: STO) are treading lower by 2.12% to $6.93 apiece despite the company's positive half-year results released today.
What's next for the price of oil?
Last week, OPEC issued its monthly oil market report forecasting that world oil demand growth in 2022 would be slower than previously expected. The group estimated that oil demand would grow at a healthy 3.1 million barrels per day (mb/d). This is due to expectations of a resurgence of COVID-19 restrictions and ongoing geopolitical uncertainties such as the Russian war in Ukraine.
In total, OPEC expects oil demand to average around 100 mb/d in 2022.
Looking further ahead, the forecast for world oil demand growth in 2023 remains unchanged at 2.7 mb/d, with total oil demand averaging 102.7 mb/d.
Woodside share price summary
Despite edging lower today, it has been a solid 12 months for the Woodside share price, up 54%.
The company's shares reached a 52-week high of $35.77 in early June on the back of multi-year high oil prices.
In terms of market capitalisation, Woodside is the largest energy company on the ASX, with a valuation of approximately $60.78 billion.
