S&P/ASX 200 Index (ASX: XJO) energy shares are trailing the benchmark today.
In afternoon trade the ASX 200 is down 0.58%. But the big energy stocks are doing it far tougher, as witnessed by the 2.55% fall in the S&P/ASX 200 Energy Index (ASX: XEJ).
Oil and gas giant Woodside Energy Group Ltd (ASX: WDS) is down 3.78%, while rival ASX 200 energy share Santos Ltd (ASX: STO) has slipped 1.12%.
This comes as crude oil prices fell again overnight.
What's happening with the oil price?
ASX 200 energy shares are under pressure today as crude oil prices fell overnight to reach fresh lows for 2022.
International benchmark Brent crude oil is down 2.4% since this time yesterday, currently trading for US$77.44 (AU$115.50) per barrel.
Brent crude was trading for just under US$79 per barrel on 3 January this year.
Then Russia's invasion of Ukraine saw prices spike to some US$128 per barrel in early March. This sent Santos and Woodside shares soaring, resulting in record profits and some outsized dividend payouts.
But the ASX 200 energy shares have struggled to maintain that share price momentum amid sliding oil prices in recent months.
There has been some bullish analysis on rising energy demand from China as the nation moves away from its COVID-zero policies. But that looks to be overshadowed by investor jitters over the price cap imposed on Russian oil exports by G7 nations, and the outlook for a slowing global economy in 2023 dampening overall oil and gas demand.
According to Rebecca Babin, a senior energy trader at CIBC Private Wealth Management (quoted by Bloomberg), "There is literally no risk appetite to buy the dip in crude right now. This is just snowballing into outsize moves."
That risk aversion could continue throwing up some headwinds for the big oil and gas stocks.
How have these ASX 200 energy shares been tracking?
As you can see in the charts below, both ASX 200 energy shares have outperformed in 2022.
The Woodside share price has charged 54% higher while Santos shares have gained a more modest 7%. They both compare quite favourably to the ASX 200, with the benchmark index down 5% year to date.
