Why Energy Stocks Plunged Today
Energy stocks dropped big on Tuesday as the price of U.S. benchmark crude oil slid by more than 8%, pulling the entire industry lower. The price of oil was falling on renewed fears that there will be a recession that cuts into demand.
Diamondback Energy (NASDAQ: FANG) fell as much as 5.7%, Transocean (NYSE: RIG) was off by as much as 6.8%, Occidental Petroleum (NYSE: OXY) at its low was down 6%, and Core Laboratories (NYSE: CLB) plunged by 7.7%. At the close, their shares were down 3.5%, 6.1%, 3.6%, and 6.3%, respectively. These are a broad range of companies, from explorers to suppliers to the industry, so you can see that the impact on oil stocks is widespread.
The price of West Texas Intermediate crude oil fell 8.2% to $95.56 in trading Tuesday, while Brent crude was down 7.5% to $99.03. When the price of oil falls, it's natural for stocks that rely on that commodity to drop as well.
Source Fool.com
