The Woodside Energy Group Ltd (ASX: WDS) share price is in the red today.
After marching higher on Monday and Tuesday the S&P/ASX 200 Index (ASX: XJO) energy share is down 1.85% at the time of writing.
This comes amid a big fall in oil prices and despite Woodside announcing a gas sales agreement with Qenos Pty Ltd.
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Woodside share price slides as oil hits 2022 lows
The Woodside share price is facing headwinds today as crude oil prices dropped to their lowest levels in 2022.
Brent crude oil prices fell 4% overnight to US$79.35 per barrel. It was only back in mid-June that Brent crude was selling for north of US$122 per barrel. Though it's worth noting the Woodside share price is up some 10% since mid-June despite the big retrace in oil prices.
Crude prices fell as there looks to be plenty of near-term crude supply as we head into 2023. Investors have also been spooked by the outlook of slowing global economic growth alongside the US$60 per barrel price cap G7 nations have slapped onto Russian oil exports.
Commenting on the falling oil prices, Ed Morse, global head of commodity research at Citigroup Inc called the recent price actions "absurd".
Morse told Bloomberg TV that traders are "fleeing the market" because, "We are getting toward the end of the year, and those who made money this year did not want to lose any."
Gas sales agreement
In other developments that should offer some support to the Woodside share price, the company announced it's entered into a gas sales agreement with Qenos.
The agreement will see Woodside supply natural gas from its equity position in Bass Strait, located in Victoria. It covers the supply of 4.5 petajoules of gas in 2023 for use at Qenos' polyethylene manufacturing facilities in Victoria and New South Wales.
Commenting on the gas agreement, Woodside executive vice president of marketing & trading Mark Abbotsford said:
This agreement ensures affordable gas supply to an important large-scale industrial consumer at a time of increased volatility and uncertainty in east coast energy markets.
Woodside is a non-operating joint venture participant in the Bass Strait Project.
Woodside share price snapshot
Despite today's dip, the Woodside share price remains up an impressive 64% over the past 12 months. That compares quite favourably to the 2% full-year loss posted by the ASX 200.
