Here's why the Woodside (ASX:WPL) share price is down 11% in the last 2 months

The hydrocarbon giant has faced headwinds over the last few months.

| More on:
barrel of oil sitting on top of falling red arrow representing asx energy shares downgrade

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Woodside Petroleum Limited (ASX: WPL) share price has faced headwinds over the year to date. Over the last 2 months, Woodside shares have slipped around 10% into the red.

Whereas the S&P/ASX 200 Index (ASX: XJO) for instance, has spent the entire year in the green.

Here we uncover some of the pressures Woodside shares have faced over the last few months.

Conservation report findings

Back in early June, the Conservation Council of Western Australia (CCWA) released its report on Woodside's Scarborough project.

In it, the CCWA said the project will have significant adverse impacts on WA's environment and World Heritage sites.

For instance, it projects that Scarborough will produce as much greenhouse gas as 15 coal fired power stations, and will expand WA's emissions by approximately 5%.

As a result, the CWWA has commenced court proceedings through the WA Supreme Court, in order to overturn the approvals granted at Scarborough.

The Woodside Petroleum share price has slipped around 10% into the red following this announcement.

Corrections and volatility in the price of oil

Woodside's share price seemed to make a small recovery on the charts in the short time after the CWWA report was released.

However, in mid-June, the price of US Brent oil made a price correction back down from its soaring 2-year highs.

Recent strength in the US dollar has led to a cooling effect in the oil markets, as US monetary policy continues to remain in the spotlight.

The entire ASX-listed oil basket slipped into the red on the back of oil's price correction. Given Woodside's exposure to three offshore oil assets in Australia, it was a major under-performer during the back end of June.

Following the volatility of oil spot prices, Woodside shares sunk 8.5% into the red, reaching a low of $22.21.

In contrast, when the price of oil made its run back up to 3-year highs towards the beginning of July, the Woodside share price had climbed back up a further 8.5%, signifying the correlation between the two securities.

Exhibit 1. Woodside share price: Observe the Volatility From 4 June 2021 – Today

Source: Google Finance

As the saying goes, history doesn't repeat, but it does rhyme. Alas, as we walked through the final stages of the second quarter, the price of black gold tumbled again, and Woodside shares tanked once more.

From their last peak in early July, Woodside shares have since fallen a further 9.5% to today's trading.

Production updates didn't go down well

Woodside also reported a 4% sequential decline from the quarter prior in its activities report back in July.

The decrease was put down to scheduled maintenance and the impact of adverse weather events.

On the contrary, Woodside realised a 15% quarter on quarter rise in its sales revenue to $1.285 billion. This boiled down to a 9% increase in delivered sales volume.

Despite hot oil markets and above-market realised oil prices, this wasn't enough to sway investor sentiment. Woodside shares have edged around 6% lower since the announcement.

Foolish takeaway

The Woodside share price has been on the back end of several headwinds over the past few months.

These headwinds have undoubtedly carried through until today, where the company's shares have lagged the broad index's return.

Despite the volatility this year, Woodside shares are still up 6.5% over the past year.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

The author Zach Bristow has no positions 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 Bruce Jackson.

More on Share Fallers

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dexus, Mayne Pharma, Nufarm, and Treasury Wine shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Dexus, Dusk, Fletcher Building, and Paladin Energy shares are falling today

These shares are ending the week in the red. But why?

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine shares: Buy, hold, or sell? Here's Macquarie's take

What is Macquarie forecasting for Treasury Wine shares amid the CEO’s unexpected exit?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Newmont, NRW, Peet, and Treasury Wine shares are dropping today

Let's find out why investors are selling down these shares on Thursday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aristocrat, EBR, GQG, and Insignia shares are tumbling today

These shares are having a tough time on hump day. Let's find out why.

Read more »