The Santos Ltd (ASX: STO) share price is down 1.2% in early afternoon trade.
Santos shares closed yesterday trading at $7.81 and are currently swapping hands for $7.72 apiece.
So, why is the S&P/ASX 200 Index (ASX: XJO) energy share under pressure?
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What are ASX investors considering today?
The broader market is enjoying a welcome rebound today following a strong performance in US markets overnight, with the ASX 200 up 0.7% at time of writing.
But the energy sector is struggling, as witnessed by the 4.0% plunge in the S&P/ASX 200 Energy Index (ASX: XEJ).
This comes as crude oil prices retreated again overnight, pressuring the Santos share price.
West Texas Intermediate (WTI) crude is currently trading for US$82.74 per barrel. That's down from US$87.39 on Wednesday and down from US$97.01 per barrel as recently as 29 August. WTI is now trading at its lowest levels since mid-January, a month before Russia's invasion of Ukraine.
International benchmark Brent crude has suffered similar falls. Brent crude is currently trading for US$88.71 per barrel, down from $93.39 on Wednesday. On 29 August, a barrel of Brent crude was fetching US$105.09.
Oil prices, and by connection, the Santos share price, are sliding as investors eye a possible recession in the United States, Europe and other top economies, which would diminish demand for fuel.
There are also concerns that China's COVID-zero policies, which are seeing major population centres locked down, will crimp China's growth outlook and oil demand.
Crude prices have slipped despite Monday's announcement by OPEC+ to reduce the cartel's output.
Santos share price snapshot
Despite today's slide, the Santos share price remains up a healthy 16% in 2022. That compares to a year-to-date loss of 11% posted by the ASX 200.
Santos also pays a 2.9% trailing dividend yield, unfranked.
The company was a clear winner of soaring oil and gas prices in the first half of the year, reporting an 85% year-on-year leap in revenue.
