Why Oil Stocks Got Crushed in August
Shares of most energy companies tumbled in August, including those of leading U.S. oil and gas producers ConocoPhillips (NYSE: COP), Continental Resources (NYSE: CLR), and EOG Resources (NYSE: EOG). All three lost more than 10% of their value last month, according to data provided by S&P Global Market Intelligence. Fueling their sell-off was a combination of lower crude oil prices and lackluster second-quarter earnings reports.
Oil prices slumped about 6% last month, which pushed the U.S. oil benchmark down to around $55 a barrel. Several issues weighed on the oil market, including weak global economic data and rising oil inventory levels. That sparked concerns that oil-demand growth would slow, which could cause another oversupply.
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Source Fool.com
