Woodside Energy Group Ltd (ASX: WDS) shares have been strong performers this year, but they're not joining in with this week's record-breaking S&P/ASX 200 Index (ASX: XJO) rally.
As you may have heard, Thursday saw the ASX 200 close at a new all-time high of 9,271.6 points.
Today, the benchmark index has slipped from that record, down 0.1% to 9,260.3 points. Still, that sees the ASX 200 up 3.2% since last Friday's close. Meanwhile, Woodside shares are down 2.7% over this time, currently changing hands for $32.07 apiece.
Taking a step back, the ASX 200 oil and gas stock has gained 35.6% in 2026, smashing the 6.2% gains delivered by the benchmark index. And that's not including the fully-franked 83.5 cents per share final dividend Woodside paid out on 27 March.
So, why is the company underperforming this week?
Image source: Getty Images
What's holding Woodside shares back from this week's rally?
There's been no concerning news out from the company this week to spook investors.
So, the underperformance of Woodside shares looks to be driven by the decline in global oil prices.
Brent crude oil is currently trading for US$83.39 per barrel, according to data from Bloomberg. That sees the oil price down 7.5% since last Friday, when a barrel of Brent crude was fetching US$90.12.
As you're likely aware, the decline in the oil price this week has been spurred by renewed hopes that a peace deal with Iran may see the vital Strait of Hormuz shipping channel reopen.
However, in the latest twist, Iran has said it wants to bar Israeli and US ships from the strategic waterway.
As I believe that particular stipulation is unlikely to sit well with US President Donald Trump, this week's oil price decline that's throwing up headwinds for Woodside shares may be short lived.
What else is happening with the ASX 200 energy stock?
In a media release after market close on Thursday, and deemed non-price sensitive to Woodside shares, the company revealed that it has entered into an agreement to sell its 70% operated interest in the Calypso Project to United Kingdom-based energy company BP.
This will see BP take a 100% interest in the project, located in Trinidad and Tobago. The companies expect the transaction – which includes an unspecified cash consideration and contingent payments – to close by the end of 2026.
Commenting on the divestment, Woodside CEO Liz Westcott said:
The transaction demonstrates Woodside's clear focus on progressing the right opportunities across our global portfolio that have the best potential to deliver sustained value for Woodside shareholders.
Completion of the divestment will conclude Woodside's decades-long presence in Trinidad and Tobago that has included interests in the Ruby and Angostura offshore oil and gas field operations and associated production facilities.
