Energy shares continued their tremendous ascent on an otherwise dour ASX as the United States and European allies discuss banning Russian oil imports.
Energy shares gained five per cent on Monday after oil prices reached their highest levels since 2008, due largely to Russia's invasion of Ukraine.
Most other share categories were lower. Technology fared worst and lost four per cent.
The benchmark S&P/ASX200 index closed down 72.2 points, or 1.02 per cent, to 7038.6 points.
The index is about 600 points below its record high from August last year.
The All Ordinaries index closed lower by 74.1 points, or 1.00 per cent, to 7321.2 points.
The Australian dollar was buying 74.21 US cents at 1622 AEDT, more than the 73.58 US cents at Friday's close.