** Australian energy stocks .AXEJ fall 3.3%

** The sub-index shed 6.9% on Monday but recouped some losses on Tuesday, ending 4% higher

** Oil prices settled down more than $1 a barrel on Tuesday at a four-year low as investors priced in an increasing likelihood of a recession due to the escalating trade war between the U.S. and China, the world's two biggest economies O/R

** Shares of Woodside Energy WDS.AX and Santos STO.AX decline 3.8% and 3.4%, respectively

** Sub-index down 20.4% this year, as of last close

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com;))