The Woodside Energy Group Ltd (ASX: WDS) share price is out of form on Thursday.
In afternoon trade, the energy producer's shares are down 2% to $38.11.
Why is the Woodside share price dropping today?
The Woodside share price is falling today after oil prices tumbled overnight.
According to Bloomberg, the WTI crude oil price was down 3.1% to US$86.18 a barrel and the Brent crude oil price was down 2.5% to US$92.99 a barrel.
Oil prices have continued to slide during Asian trade, with the WTI crude oil price now fetching US$85.65 a barrel and the Brent crude oil price trading at US$92.49 a barrel.
Traders were selling down oil following an increase in US crude stockpiles. According to CNBC, industry data showed that U.S. crude stockpiles rose by 5.6 million barrels for the week ended 4 November. This was significantly more than the 1.4 million barrels the market was expecting.
In addition, a rebound in COVID-19 cases in top importer China has caused concerns that fuel demand could soften.
Stephen Innes, managing partner at SPI Asset Management, commented:
With that (China reopening) narrative getting pushed back, coupled with a considerable build on U.S. inventory data, implying dimming U.S. demand, the recessionary crews are back out in full force this morning in Asia.
It isn't just the Woodside share price that is falling today. The Beach Energy Ltd (ASX: BPT) share price is down 2.5% and the Santos Ltd (ASX: STO) share price is down almost 1%.
This has led to the S&P/ASX 200 Energy index falling 1.8%, making it the worst performing area of the Australian share market on Thursday.
