Why Exxon, Chevron, and Devon Energy Plunged Today
Shares of oil and gas stocks Exxon (NYSE: XOM), Chevron (NYSE: CVX), and Devon Energy (NYSE: DVN) fell hard on Tuesday, down 3.5%, 3.1%, and 5.7%, respectively.
The culprit wasn't hard to figure out, as oil prices fell roughly 4%, and natural gas prices plunged over 10% on Tuesday. Thus, these oil and gas-sensitive stocks fell, with the more diversified Exxon and Chevron falling less than Devon, which is more directly exposed to oil and gas prices. While Chevron did close on a previously announced acquisition of Beyond6, LLC and its nationwide network of compressed natural gas stations, the stock's move was likely due to these larger macroeconomic factors.
While the recent "reopening" in China spurred some recent optimism for oil demand in 2023, the resulting surge in COVID-19 cases appears to still be affecting the country's economic activity. The December 2022 purchasing managers' index (PMI) came in at 47 today, down from 48 in November, and signaled a contraction even though the country attempted to reopen fully last month.
Source Fool.com
