Why Energy Stocks Are Falling Today
Unrest in China and the threat of more lockdowns there have investors worried about oil demand, leading oil prices to fall to levels unseen since late 2021. Major energy companies are feeling the sting, with shares of ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and Kinder Morgan (NYSE: KMI) all falling as much as 3% Monday morning.
Oil prices have been volatile this year, jumping by about 50% early in the year on hopes that demand would grow as the world recovers from the pandemic, but giving back most of those gains in recent months. Investors have been worried about central banker efforts to slow the economy and what that might mean for global demand.
China is only adding to that uncertainty. An estimated one-third of the country's population is currently under a full or partial COVID-19 lockdown, putting a real strain on economic activity. The lockdown has also led to street protests in China, creating the potential for further instability.
Source Fool.com
