The Woodside Energy Group Ltd (ASX: WDS) share price is in the red on Monday.
At the time of writing, the energy producer's shares are down 5.57% to $30.01.
This represents a fall of 9% in the past week and the lowest level since 31 May this year.
Let's take a look at what's happening with Woodside and the market.
Woodside shares tank as oil price slides
Investors are dragging down the Woodside share price as oil prices continue to slump.
Currently, the price of West Texas Intermediate (WTI) and Brent crude are fetching at US$78 and US$85 per barrel, respectively.
Fears regarding slower economic growth and a possible recession in Europe have spooked oil markets today.
This comes as the Russian war in Ukraine escalates to a new level.
Russian President Vladimir Putin ordered a partial mobilisation of 300,000 men to the front lines in Ukraine. Notably, this is the first mass draft in Russia since World War II.
Putin also stated he will use any means at his disposal to defend Russian territory, which is likely to include captured Ukrainian soil in the Donbas region. Most analysts are interpreting this as a thinly veiled threat to use nuclear weapons to hasten accomplishing his strategic objectives.
And with the US Fed Reserve lifting interest rates by 75 basis points last week, markets are reacting to the move.
In fact, some economists are calling the tug of war the "Powell vs Putin" battle, referring to US Fed Reserve chair, Jeremy Powell.
Where to next for oil prices?
Last week, OPEC issued its monthly oil market report forecasting that world oil demand growth in 2022 remains unchanged at 3.1 million barrels per day (mb/d).
This is due to still-solid economic performance in major consuming countries, as well as potential improvements in COVID-19 restrictions and reduced geopolitical uncertainties.
Looking further ahead, the forecast for world oil demand growth in 2023 is expected to be at 2.7 mb/d.
Woodside share price summary
Despite slumping today, it has been a solid 12 months for the Woodside share price, up 35%.
The company's shares reached a 52-week high of $36.68 in late August on the back of multi-year high oil prices.
In terms of market capitalisation, Woodside is the largest energy company on the ASX with a valuation of approximately $60.34 billion.
