The Beach Energy Ltd (ASX: BPT) share price is having a poor day on Thursday.
In afternoon trade, the energy producer’s shares are down almost 3% to $1.62.
Why is the Beach share price falling?
The Beach share price and other energy shares have come under pressure today following a pullback in oil prices.
Oil prices tumbled during overnight trade and have continued their slide during Asian trade.
For example, according to CNBC, the WTI crude oil price is down a further 1.75% to US$104.33 a barrel and the Brent crude oil price is down a further 1.5% to US$110.04 a barrel.
This has been driven by concerns that aggressive U.S. interest rate hikes could trigger a recession and dent demand for fuel.
Not even news that U.S. President Joe Biden has called on Congress to pass a three-month suspension of the federal gasoline tax has been able to stop oil’s decline. President Biden’s plan aims to help combat record fuel prices and provide temporary cost of living relief for American consumers this summer.
Is this a buying opportunity?
According to analysts at Macquarie, it’s not quite time to push the buy button.
This morning, its analysts upgraded Beach Energy’s shares to a neutral rating from underperform with a $1.65 price target. This is largely in line with where the Beach share price is trading today.
The broker made the move on valuation grounds after a sharp decline in recent weeks.
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