Why ConocoPhillips Stock Is Slumping Today
Shares of ConocoPhillips (NYSE: COP) had fallen more than 5% by 10:45 a.m. EDT on Wednesday. Weighing on the oil stock were plunging crude oil prices and earnings at its acquisition target Concho Resources (NYSE: CXO), whose stock also fell by more than 5% in early morning trading.
On Wednesday, oil prices sold off, with the U.S. oil benchmark WTI sinking almost 5% to less than $38 per barrel. Weighing on crude prices were a higher-than-expected rise in oil inventory levels and surging coronavirus cases across the U.S. and Europe. With the pandemic worsening, governments are contemplating new lockdown orders, which would hit demand. That combination of rising supplies and the potential for weaker demand weighed on most oil stocks, including ConocoPhillips and Concho Resources.
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Source Fool.com
