Santos Limited (STO.AU) saw its stock price plummet by 12.44% in Monday's trading session, as the Australian energy sector faced significant pressure due to lacklustre oil prices and growing concerns about global oil demand. The sharp decline comes amid a broader sell-off in energy stocks, with the Australian energy sub-index (.AXEJ) down 8.3% and hitting its lowest level since early November 2020.

The substantial drop in Santos Limited's share price can be attributed to several factors affecting the energy sector as a whole. Oil prices have been falling, extending losses from the previous week, as investors worry about the potential impact of a global trade war on the world economy and subsequently on oil demand. These concerns have been exacerbated by China's retaliation against U.S. President Donald Trump's tariffs, further fueling fears of an economic slowdown.

Santos Limited's decline outpaced the already significant 7.2% drop experienced by its peer Woodside Energy (WDS.AX), highlighting the severity of the market's reaction to the current oil market conditions. The Australian energy sub-index's poor performance, now down 17.8% year-to-date, underscores the challenging environment facing energy companies in the region. As global economic uncertainties persist and oil prices remain under pressure, investors will be closely monitoring Santos Limited and other energy stocks for signs of stabilization or further volatility.