Why These 3 Oil Dividend Stocks Tumbled More Than 15% in June
Oil prices cooled off a little bit in June. West Texas Intermediate (WTI), the primary U.S. oil price benchmark, fell 7.8% last month, closing at $105.76 per barrel. However, crude prices were still up over 40% on the year.
Last month's sell-off in the oil market weighed on most oil stocks. Several were down double digits on the month, with leading oil dividend stocks Devon Energy (NYSE: DVN), Diamondback Energy (NASDAQ: FANG), and Occidental Petroleum (NYSE: OXY) all tumbling more than 15% in June, according to data provided by S&P Global Market Intelligence. Here's a look at what caused oil prices to cool off last month and whether it will impact these oil-fueled dividends.
Two factors caused crude prices to come down a little bit last month. First, there are growing concerns that demand could take a hit. Record gasoline prices are causing some consumers to change their driving habits. Meanwhile, there are increasing fears that rising interest rates to combat inflation will cause a recession and impact demand for refined petroleum products like jet fuel, gasoline, and diesel. This potential demand degradation is coming as oil supplies should improve. OPEC recently pledged to add another 648,000 barrels a day to supply. Rising supplies amid cooling demand is usually the recipe for lower oil prices.
Source Fool.com
