It's been a shaky day to be in the stock market so far this Wednesday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has lifted by a tentative 0.13% and is hovering just above 8,187 points. But unfortunately, the Woodside Energy Group Ltd (ASX: WDS) share price hasn't been so lucky.
The Woodside share price is having a shocker so far this session. This ASX 200 energy stock closed at $26.34 a share yesterday afternoon. But today, those same shares opened at just $25.80 and are currently down a horrid 2.79% at $25.60 each.
So what on earth is going on with the Woodside share price that has elicited this drastic underperformance of the broader market today?
Image source: Getty Images
2 things driving Woodside shares down on Wednesday
Well, firstly, the price of oil itself is probably driving investors away from the Woodside share price and other ASX energy and oil shares today.
As my Fool colleague James covered this morning, oil prices had a horrid night overnight. The West Texas Intermediate (WTI) crude oil price was down 4.25% to US$73.87 a barrel, while Brent crude fell 4.25% to US$77.48 a barrel.
This drop comes amid a pause in Middle East hostilities this week and a lower-than-expected stimulus package from China.
This afternoon, we also covered how the Chinese government's fresh announcement of economic stimulus disappointed many investors, with some of the big miners also falling in value today. As my Fool colleague Bernd reported, "China's National Development and Reform Commission (NDRC) meeting failed to detail any additional major stimulus measures."
China's economy is one of the world's hungriest in terms of crude oil demand. As such, it's not a stretch to see why lower growth expectations might put downward pressure on oil prices.
This probably explains why most ASX energy shares, including Beach Energy Ltd (ASX: BPT), Santos Ltd (ASX: STO) and the Woodside share price itself, are having a rough time this Wednesday.
Woodside acquisition clears the finish line
But we also have some Woodside-specific news to cover today, which might be contributing to the company's woes.
This morning, Woodside released an ASX announcement informing investors that its acquisition of Tellurian Inc., an American energy company, has been completed. Woodside paid US$900 million for Tellurian and inherited the company's under-construction LNG production and export terminal in the US state of Louisiana.
Some Woodside shareholders have criticised this acquisition, and its completion might not inspire the enthusiasm that the company hopes for.
So, overall, it was a tough day for the Woodside share price. Investors will no doubt hope that the rest of the week is kinder to this ASX 200 energy giant.
