The Santos Ltd (ASX: STO) share price is suffering a blow on Wednesday. The company's struggles come amid a major downturn in oil prices.
At the time of writing, the Santos share price is $7.12, 4.81% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.55% while the S&P/ASX 200 Energy Index (ASX: XEJ) has slumped 5.39%.
So, how bad could overnight trade in oil have been? Readers might be surprised.
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What's weighing on the Santos share price?
The share price of ASX 200 oil and gas giant Santos is taking a tumble on Wednesday after global oil prices plummeted overnight.
The price of Brent crude oil plunged 9.5% to trade at US$102.77 a barrel while the US Nymex crude price fell 8.2% to US$99.50 a barrel.
That marked their biggest single-day falls since early March, reports Reuters.
The energy commodities' fall came amid concerns that rate hikes could spur a global recession, according to the publication.
Meanwhile, a COVID-19 testing blitz in Shanghai appears to have the market worried China could enter another lockdown, thereby lessening demand for oil.
Finally, the United States dollar lifted overnight. That means oil is now more expensive for those trading in other global currencies.
Interestingly, the Santos share price is only the third worst-performing ASX 200 energy share today.
The share price of Beach Energy Ltd (ASX: BPT) takes out that crown. It's down 7% right now.
Meanwhile, Woodside Energy Group Ltd (ASX: WDS), Worley Ltd (ASX: WOR), and Whitehaven Coal Ltd (ASX: WHC) are down 6.66%, 4.94%, and 4.14% respectively.
