Why Oil Stocks Are Crashing Today

The bottom fell out of the oil market on Monday. At one point in overnight trading, crude oil prices were down more than 30%. They've recovered somewhat, with WTI, the U.S. oil benchmark, down more than 16% at 10:45 a.m. EDT on Monday, and below $35 a barrel.

The shellacking in the oil market has eviscerated energy stocks. Nearly the entire sector has cratered today, with some of the most significant moves coming from oil producers focused on the Permian Basin. U.S. oil giants ConocoPhillips (NYSE: COP), EOG Resources (NYSE: EOG), and Occidental Petroleum (NYSE: OXY) had tumbled 22%, 29%, and 32%, respectively, by 10:45 a.m. EDT. Meanwhile, smaller Permian Basin-focused drillers like Diamondback Energy (NASDAQ: FANG) and Parsley Energy (NYSE: PE) were down more than 40%.