Why Hess Stock Tumbled 15% in January
Shares of Hess (NYSE: HES) slumped 15.3% in January, according to data provided by S&P Global Market Intelligence. Weighing on the oil stock was a sell-off in the price of oil and the release of its fourth-quarter results.
Crude prices tumbled in January, fueled by fears that the coronavirus would sap demand for oil in China. WTI, the U.S. oil benchmark, fell 15.6% for the month, closing below $52 a barrel, its lowest level since August. Meanwhile, the global oil benchmark, Brent, fell about 12% for the month, ending around $58 per barrel. That sell-off weighed on most oil stocks, including Hess, since it will produce less cash this year if crude remains at these lower levels. The slump is coming at an unfortunate time for Hess since it recently started up production at the first phase of its offshore development near Guyana.
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Source Fool.com
