Australian energy stocks slipped as much as 2.2% to reach their lowest level since July 12 as weak oil prices continue to weigh on the sector.

Wednesday saw oil prices fall by more than $5 due to concerns over fuel demand destruction and a bleaker economic outlook.

Woodside Energy Group (ASX: WDS) experienced as much as a 2.5% slip, landing at its lowest level since July 7.

Similarly, shares of Santos (ASX: STO) saw a 2.6% fall, marking their lowest level since June 26.

If the trend continues, the sub-index is on track to record a fifth consecutive session of losses.

However, as of its last close, it was up 0.6% for the year to date.

Woodside Energy Group is an Australian petroleum exploration and production company.

Santos is another key player in the Australian energy sector, specializing in oil and gas production.