Why did the Woodside share price lag the ASX 200 today?

Oil prices fell overnight amid China COVID-19 cases and interest rate fears in the United States.

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Key points
  • Woodside shares had a tough run today 
  • Oil prices fell overnight but have since recovered 
  • The Woodside share price has surged 73% in the year to date. 

The Woodside Energy Group Ltd (ASX: WDS) share price finished today slightly in the red.

Woodside shares fell 0.81% to $37.89. For perspective, the S&P/ASX 200 Index (ASX: XJO) lifted 0.23% today.

Let's take a look at what may have weighed on the Woodside share price.

Sad looking worker standing next to an oil drill.

Image source: Getty Images

What happened?

Woodside shares may have struggled today after the oil price fell overnight.

Brent crude oil fell 3.3% to US$89.78 a barrel, while US WTI oil dropped 4.6% to US $81.64 a barrel overnight.

Oil prices fell amid interest rate hike fears in the United States and higher COVID-19 cases impacting demand in China, Reuters reported.

Commenting on the oil price BOK Financial senior vice president of trading Dennis Kissler told the publication:

It's kind of a triple whammy. We've got COVID-19 cases rising in China, interest rates are continuing to rise here in the U.S. and now we've got technical weakness in the market.

However, oil prices have since recovered some of their losses. WTI Crude Oil is up 0.92% on the previous session to US $82.39 a barrel, while Brent Crude Oil is climbing 0.7% to US$90.41 a barrel at last look.

Meanwhile, the US government is preparing to issue guidance on a Russian oil price cap, according to another report on Reuters.

This aims to stop Russia from profiting from higher oil prices. The cap would be applied by the United States, Group of Seven allies and Australia.

Woodside produced a record total production of 51.2 MMboe in the third quarter of the 2022 calendar year.

The company achieved an average realised price of $102 per barrel of oil equivalent. Woodside is also a major gas producer. The natural gas price is currently down 0.3% to US$6.35 per MMBtu.

Woodside share price snapshot

The Woodside share price has exploded 73% in the year to date, while it has surged 72% in the past year.

For perspective, the ASX 200 has fallen 3% in the last year.

Woodside has a market capitalisation of nearly $72 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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