Woodside share price sinks as oil remains under pressure

The oil and gas giant appears to be feeling the effects of an overnight drop in oil prices.

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Key points
  • Woodside shares are down by more than 1% today 
  • A supply update from OPEC appeared to weigh on the oil price overnight 
  • However, the oil price is now pegging back its losses and is lifting 

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

Woodside shares are currently down 1.39%, fetching $32.74 apiece. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is sliding 0.39% today. In contrast, the S&P/ASX 200 Index (ASX: XJO) is climbing 0.29%.

Let's take a look at what could be impacting the Woodside share price today.

Close up of a miner wearing a hard hat with a solemn look on his face, with an oil drill in the background.

Image source: Getty Images

What's going on?

Shares in the major oil and gas producer have shed 13% in the past week alone.

As my Foolish colleague James reported this morning, the WTI crude oil price fell 4.7% to US$71.29 a barrel overnight and the Brent Crude oil price fell 4.2% to US$77.39 a barrel.

A supply update from the Organization of the Petroleum Exporting Countries (OPEC) as well as broader economic concerns appeared to weigh on the oil price. In a research note, ANZ economist Kishti Sen said:

Crude oil remained under pressure as concerns of weaker economic activity sparked by Silicon Valley Bank's failure reverberated through the market.

The negative sentiment was aided by OPEC forecasting a modest surplus to remain in place during Q2. The producer group said it will pump around 28.92mb/d, or about 300kb/d more than it expects will be needed. 

Commenting on the recent oil price slide, Oanda senior market analyst Ed Moya said "energy traders can't find a reason to buy this dip until we get past the next round of inventory data". According to Bloomberg, he added:

Rising stockpiles are expected and that could keep oil vulnerable over the next 24 hours.

However, the oil price has since recovered this morning. Brent Crude is now up 0.65% to US$77.95 a barrel, while WTI Crude Oil is lifting 0.81% to US$71.91 a barrel, according to Bloomberg Energy.

Woodside reported a record underlying NPAT of US$5.23 billion for the 2022 calendar year. The company lifted its final dividend by 37% to US$1.44 per share. This is due to be paid on 5 April.

Woodside share price snapshot

Despite the heavy losses of the past week, the Woodside share price has climbed almost 6% in the last year.

For perspective, the ASX 200 has dropped 0.9% in the past 12 months.

Woodside has a market capitalisation of about $62 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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