Why Investors Shunned Energy Stocks Today
With a generally humming global economy and robust demand for fossil fuels, the energy industry has generally been buoyant over these past few years. This, despite the threat of inflation and the dampening effect of conflicts in several hot spots around the globe.
This wasn't in much effect on Wednesday, though, as the usual No. 1 factor in energy-stock sentiment -- oil prices -- eased notably. With that, investors shed their positions in oil industry majors Conoco Phillips (NYSE: COP) and ExxonMobil (NYSE: XOM), both of which saw their prices close around 3% lower. Their Scandinavian peer Equinor ASA (NYSE: EQNR) saw a steeper fall, at nearly 6%.
The price of Brent oil futures, considered a benchmark by many "black gold" investors and observers, fell by more than 2% on Hump Day. And where prices go, the values of oil stocks tend to follow.
Source Fool.com
