Why Chevron Plunged 15% This Week
It's all fun and games until a recession looms on the horizon, and then it's look out below. Shares of Chevron (NYSE: CVX) fell 15.4% this week compared to where they closed out last Friday, according to data from S&P Global Market Intelligence, as economic decline looks increasingly likely.
If the economy contracts and people are put out of work, the demand for oil will weaken. The price of a barrel of oil plunged Friday as recessionary fears grew, outweighing the concerns over supplies from global geopolitical hostilities.
The price for West Texas Intermediate crude, Brent, and natural gas all tumbled around 5% for the day for July contracts.
Source Fool.com