Shares of Australian energy stocks (ASX:EJ) have taken a significant hit as they plunge as low as 7.5% this week, reaching their lowest point since the middle of July.

As it stands, energy stocks are currently down 6.4% this week and are on course for their worst week since mid-June if the losses persist.

The downward trajectory of the energy stocks is largely attributed to the falling oil prices where rates dropped approximately 2% on Thursday.

This further adds to previous declines due to concerns of fuel demand outweighing OPEC+’s decision to keep oil output cuts, leading to a tight supply.

Notably, sub-index majors Woodside Energy (ASX:WDS) and Santos (ASX:STO) took heavy hits as they dipped 7.9% and 8.1% respectively throughout the week.

As of the last close, energy stocks have fallen 0.2% year-to-date.

Woodside Energy and Santos are some of Australia’s leading energy companies specializing in oil and gas operations.