Why Occidental Petroleum, Cheniere Energy, and Enbridge Are Plunging Today
Shares of oil and gas companies Occidental Petroleum (NYSE: OXY), Cheniere Energy (NYSEMKT: LNG), and Enbridge (NYSE: ENB) were plunging today, down 5.9%, 5%, and 4.9%, respectively, as of 1:50 p.m. ET.
The culprit for today's fall was easy to spot: Overall oil and natural gas prices plunged today, as another prominent bank appears to be in severe trouble. Following three recent U.S. bank failures last week, today it was Europe's Credit Suisse (NYSE: CS) that was the catalyst for economic jitters.
Rapid interest rate increases from global central banks are now causing stresses in the least well-managed banks, both in the U.S. and Europe. That banking crisis is now making its way into commodity markets, which appear to be anticipating the recession the global economy has thus far escaped since the rate-hiking cycle began last year. In addition, data from both the Energy Information Administration (EIA) and Refinitiv pointed to a potential near-term supply glut of both oil and natural gas, which didn't help matters.
Source Fool.com
