Shares of oil and gas giant Chevron (NYSE: CVX) tanked this morning and shed 2.5% within minutes of the market's opening. The oil stock managed to enter positive territory as the day progressed, but it was only a dead cat bounce. As of 1:30 p.m. ET on Thursday, Chevron stock was back in the red and trading 1.4% lower as crude oil prices slipped.

The West Texas Intermediate crude oil price crumbled nearly 5% this morning to its lowest level in nearly a month, driven primarily by two factors.

First, COVID-19 cases in China continue to rise. This morning, Reuters reported cases in the nation have hit levels last seen in April, forcing more manufacturing hubs to extend lockdowns. Investors fear lockdowns and the consequential fall in manufacturing activity will hurt demand for oil from one of the world's largest oil-consuming nations.

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Source Fool.com