Why Marathon Oil Stock Plunged Nearly 55% in the First Half of 2020
Shares of Marathon Oil (NYSE: MRO) plummeted 54.9% during the first half of this year, according to data provided by S&P Global Market Intelligence. The main factor was the massive crash in crude oil prices as the COVID-19 pandemic crushed demand in an already oversupplied market.
Oil prices began 2020 at around $60 a barrel, but cratered as demand plummeted after governments imposed restrictions on travel and nonessential businesses to slow the spread of COVID-19. At one point in April, May futures for West Texas Intermediate (WTI), a key U.S. oil benchmark, crashed into negative territory because the country was running out of space to store excess oil. While WTI crude would go on to stage an epic comeback -- it rallied by more than 90% during the second quarter -- it still ended the first half of the year down 36% at just over $39 a barrel. That slump weighed on most oil stocks, including shares of Marathon Oil.
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Source Fool.com
