06.12.2022 00:01:27

Why Chevron, ExxonMobil, and Kinder Morgan Stocks Dropped on Monday

Oil stocks fell on Monday, with Chevron (NYSE: CVX) ending the day down 2.4% and ExxonMobil (NYSE: XOM) falling 2.8%. Kinder Morgan (NYSE: KMI), more of a domestic player in oil and gas transport than in production, suffered a loss of 2.3%.The big news in oil and gas today came out of Saudi Arabia, which announced that it is cutting the price of oil it produces for export to Asia (read "China") by $2.20 per barrel. OilPrice.com notes that this is the lowest price the country has charged for Asian market oil in the past 10 months, and reflects weak demand (and thus weakening prices) created by ongoing zero-COVID policies that have slowed the Chinese economy.  At the same time, Saudi Arabia cut the price of oil exported to northwestern Europe by nearly $1.80 per barrel. This move has less to do with COVID and more to do with Russia's war on Ukraine slowing Europe's economy. It's still curious, though, because the big story in Europe this year was supposed to be the difficulty securing new energy supplies to replace oil and gas that is no longer being bought from Russia. That doesn't seem to jibe with a Saudi price cut.Continue reading
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