Why Oil Stocks Are Coming Under Pressure
The OPEC merry-go-round continues. After surprising the market in early March by keeping supply restrictions in place through April, the group of oil-producing nations decided to surprise the market recently by increasing production levels in May and then again in June and July.
Image source: Getty Images.
These actions have a distorting effect on the price of oil, and shareholders in major oil companies like Occidental Petroleum (NYSE: OXY) are feeling it, too. After surging in early March due to the rise in oil to $65 a barrel, Occidental stock slumped 7.6% on Monday, and the price of oil is now below $60 a barrel as this is being written.
Source Fool.com
