It's a good day on the ASX 200. So why is the Woodside share price getting beaten up?

We investigate why Woodside shares are lagging the ASX 200 this Tuesday?

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published October 18, 2022 2:18 pm AEDT

It's been a very pleasant day overall for ASX shares and the S&P/ASX 200 Index (ASX: XJO) this Tuesday. As it currently stands, the ASX 200 has gained a healthy 1.35%, putting it well back over 6,700 points. But we can't say the same for the Woodside Energy Group Ltd (ASX: WDS) share price.

In stark contrast to the ASX 200, Woodside shares are having a clanger. The ASX 200 oil share is currently sitting at a loss of 1.09% at $32.77 a share.

So what's going on here? Why are investors shunning this energy share?

A man in a business suit wearing boxing gloves slumps in the corner of a boxing ring representing the beaten-up Zip share price in recent times — Image source: Getty Images

Why is the Woodside share price lagging behind the ASX 200 today?

Well, oil shares, like Woodside, tend to take most of their pricing influences from the price of crude oil itself. That's because this is the single largest factor that influences their overall profitability.

And, lo and behold, oil prices have had a tough 24 hours. As my Fool colleague James flagged this morning, Brent crude is currently down by 0.17% at US$91.46 a barrel, while West Texas Intermediate (WTI) crude has lost 0.22% at US$85.27.

With the price of oil stalling, it's perhaps no wonder oil shares like Woodside are on struggle street today.

It's not just Woodside either. The energy sector is currently the only ASX 200 sector to have recorded a loss today. As it currently stands, the S&P/ASX 200 Energy Index (ASX: XEJ) is nursing a loss of 0.97%.

Other ASX oil shares like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) have also been significantly sold off. Santos shares are presently down 1.39% at $7.465, while Beach shares have lost 1.17% so far at $1.527 a share.

Oil may be known as black gold. But few investors would be throwing that name around this Tuesday.

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