Energy stocks led by Halliburton, APA top S&P losers as oil prices crushed
SlavkoSereda/iStock via Getty Images
Energy company shares (NYSEARCA:XLE) fell by the most of any S&P sector on Tuesday, as ramped up recession fears connected with concerns over weakening demand, outweighing a fundamentally tight supply market and pushed U.S. crude oil below $100/bbl for the first time since May 11.
"A growing number of analysts are expecting that many of the world's leading economies will suffer negative growth in the next few months, and this will drag the U.S. into a recession," Fawad Razaqzada, market analyst at City Index, told Bloomberg.
WTI crude (CL1:COM) crumbled -8.2% to $99.50/bbl, the lowest since April 25 and the first close below the $100/bbl level in more than a month; at one point, WTI tumbled more than 10% to trade as low as $97.43.
Front-month Brent crude (CO1:COM) fell by even more, -9.4% to $102.77/bbl, its lowest settlement value since May 10.
The day's four biggest decliners on the S&P 500 all were related to oil and gas production: (NYSE:HAL) -8.1%, (NASDAQ:APA) -7.4%, (COP) -6.9%, (HES) -6.8%.
ETFs: (USO), (XOP), (VDE), (OIH), (IEO), (CRAK)
J.P. Morgan warned recently that crude prices could skyrocket to as high as $380/bbl if Russia chooses to impose deep cuts in oil production; by contrast, Citi analysts said crude prices could collapse to $65/bbl this year in the event of a recession.
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Comments (50)
@better investing depends on the state. Last month, I paid $4.29 a gallon in Sedona, AZ
Attacking fossils by a fossil without a realistic replacement is fuelish and stupid. So here we are with a man made problem and good jobs vaporized.
The oil companies have been burned in the past and aren't about to overextend themselves this time. None of 'em are going to fall on their knife for this administration. Great to see them strengthening their finances after several bad years.
@magellan1947 They had those bad years because they thought they could overproduce to quell the renewable energy growth through lower oil prices through "oversupply" only to find that OPEC was not cooperating with corresponding oil production cuts there. then all heck broke loose. our EXxons Chevrons OXYs lost billions yet they came back from the dead and bankrupt .. We splurged toomuch on gasoline and the thanks we got from them ???? $6 gasoline.
So I urge people to cut back gas/diesel pruchases 20% until Exxons Chevrons and Oxys are put back in their doghouses..
So I urge people to cut back gas/diesel pruchases 20% until Exxons Chevrons and Oxys are put back in their doghouses..
@Pepsiguy5 you will cut back your gasoline purchases 20% ?
if so, thanks!
if so, thanks!
So Biden sets the table for inflation by cancelling Keystone on his first day. This eliminates a stable supply of heavy crude from Canada, which blended with Williston Basin Light crude would flow through the pipes to Gulf Coast refineries. Now USA needs to find heavy crude replacements shipped from overseas. This destabilizes oil futures market and results in ever climbing crude prices since Jan 2021. Add to that the debacle in Ukraine caused by US/EU reckless expansion of NATO and shoot yourself in the foot sanctions and here we are.
Germany has about 43 million workers. If they can’t evade sanctions and get gas supplies, 1.2 millions workers willoose jobs just in petro-chem industry. Now unemployment goes from 5% to 7+%. And thats just the beginning. Yes, expect a slow down in Europe that spreads to US this fall.
Germany has about 43 million workers. If they can’t evade sanctions and get gas supplies, 1.2 millions workers willoose jobs just in petro-chem industry. Now unemployment goes from 5% to 7+%. And thats just the beginning. Yes, expect a slow down in Europe that spreads to US this fall.
“Sure as h*** beats working on the docks!”
I added today, I don't think oil is going anywhere but up. I can't think of anything more reckless than Biden draining our strategic oil reserves in the middle of a war just so he can win an election.
@Winnertakesall We the People can cut back our normal gas/diesel purchases 20% without undue hardships.. many is just the worst gasohoics that can be told to cut even more. Even those dividend aristrocrat gasoholics are not thrilled with the gas prices today. so what is the point about letting or watching gas prices keep going up ? We the People can control gasoline/diesel prices ourselves without any need to vote for our favorite politicians. Our poltiicans like us to think that they are doing something about it which is not true.
We the People can cut down !
without harming our economy.
We simply waste too much needlessly!
WE the People will find ways to cut back!
the oil industry must obey the People!
We the People can cut down !
without harming our economy.
We simply waste too much needlessly!
WE the People will find ways to cut back!
the oil industry must obey the People!
Just stop buying gasoline/diesel you dont need !! Stop silly driving !! manage your energy usage! Be wise! Oil is politics ... the more you buy gasoline the more powerful the oil lobby and its polticians usually Republicans .. I dont discount liberals Some liberals are pure hypocrites themselvese.. it doesnt matter which party will lose the most if we stop buying too much gasoline/diesel.. All the poltical dust will eventuall y settle. Republicans will learn to love reenwable energy. the oil lobby will be relegated from K Street to a lesser street maybe P Street in the Beltway next to a manhole over the main sewage pipe full of swamp gas going through the manhole cover holes!!
Many people depend on liberal programs yet they keep squandering $$$$ on gasoline/diesel just for good times .... they get what they ask for! Time to be smart now! Screw the Exxons and Chevrons !!! FK them ! America will be a lot better. also FK the fossil purists !! TV evangelists funded by oil !!!
Many people depend on liberal programs yet they keep squandering $$$$ on gasoline/diesel just for good times .... they get what they ask for! Time to be smart now! Screw the Exxons and Chevrons !!! FK them ! America will be a lot better. also FK the fossil purists !! TV evangelists funded by oil !!!
@RWilliam oil prices is not as important as how many fewer million barrels we use. This is the key to everything! We the People can fix this ourselves and stop listening to our politicans who listen to oil lobby ..
Oil dollars is behind many poltical movements against our government that hurt most of us.. If you dont think you are hurt, then fine, dont just argue with me .. if you agree with me , then the dollars you spend on oil is like a boomrang going around and hit you in the head..
Dont blame the polticians... Blame yourself for throwing the boomrang1
Oil dollars is behind many poltical movements against our government that hurt most of us.. If you dont think you are hurt, then fine, dont just argue with me .. if you agree with me , then the dollars you spend on oil is like a boomrang going around and hit you in the head..
Dont blame the polticians... Blame yourself for throwing the boomrang1
Oil is sitting at $101.00Hardly "crushed."Remember what Seeking Alpha favorite Cathie Wood said:"I would be surprised if we ever saw Oil at $70 again." (May 2021)Don't believe the hype comes to mind...
@deercreekvols and it wasn't her only miscalculation...
Although I believe oil will rise higher in the future it's an interesting article. To begin with, extremely high oil prices have been the leading factor in inflation. High energy prices have an effect on nearly everything. So basically OPEC+ did everything possible over the last 18 months to limit supply while demand slowly increased since late 2020. One could argue, that if supply was not limited, then prices wouldn't have gone nuts. Hence, causing inflation. Now oil is dropping because high oil prices have punished our global economy to the point of a global recession. All the while, many countries leadership (OPEC+ and others) have sat idly doing nothing to increase the supply of oil. In closing, thank U OPEC+ for getting over on the world, thank U Russia for starting a war, and thank U to all the leaders of the world for just sitting around and letting this happen....And don't think the world doesn't have plenty of oil. Just 2 years ago we nearly ran out of places to put it. Houston, we have a supply constriction issue.
Let me get this straight. In 2019 oil was $55 a barrel and $BP was $40 a share. Today oil is $100 a barrel and BP is $27 a share. Get real. Who is selling their BP at this point?
