Despite the local share market climbing significantly higher, the Santos Ltd (ASX: STO) share price is once again heading in the wrong direction.
In afternoon trade the oil and gas company's shares are down over 1% to $3.20. Unfortunately for shareholders this means its shares have now lost 20% of their value year-to-date.
Weakening oil prices due to increased production from U.S. shale oil producers is largely behind the decline in its share price.
Unfortunately one expert is tipping the oil price for further declines. According to a report by CNBC, Fereidun Fesharaki from consulting group FGE believes the oil price could fall as low as US$30 a barrel if OPEC fails to make additional cuts to production.
Fesharaki has stated that production needs to be cut by an additional 700,000 barrels per day, or else oil prices will sink.
