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Highlights

  • ASX Energy Index drops 8.3%, heading for fourth straight session of losses.

  • Index hits lowest level since November 2020 as oil prices continue to slide.

  • Woodside and Santos shares plunge 7.2% and 10.4%, respectively.

Australian energy stocks are facing heavy losses to start the week, with the ASX Energy Index (XEJ) falling 8.3% in early trade. The sector is now on track for its fourth consecutive session of declines, and the index has dropped to levels not seen since early November 2020.

The downturn follows an extended slide in global oil prices, which continued into this week as concerns grow over a potential slowdown in global demand. The latest trigger came after China announced retaliatory measures in response to tariffs introduced by former U.S. President Donald Trump, intensifying fears of a renewed global trade war.

Heavyweights Hit Hard

Major energy producers were among the worst hit:

  • Woodside Energy (ASX:WDS) saw its shares fall 7.2%.

  • Santos Ltd (ASX:STO) plunged 10.4%, deepening the sector’s losses.

Falling crude prices, combined with rising geopolitical risk, have sent shockwaves through the energy market. Investors are bracing for further demand weakness if the economic fallout from the escalating U.S.-China tensions continues to grow.

A Tough Year for Energy Stocks

As of the most recent close, the energy sub-index had already fallen 17.8% year-to-date, and today’s sharp drop has only widened the gap. The sector has been struggling to recover despite earlier optimism tied to OPEC+ supply management and post-pandemic demand recovery.

Market watchers say energy companies could remain under pressure unless oil prices stabilise and geopolitical tensions ease.