XOM - Why ExxonMobil Occidental Petroleum and Phillips 66 Stocks Just Dropped
It's Friday morning -- two days after the Federal Reserve raised interest rates 0.75%, and one day after seemingly every other central bank in the world followed suit, according to The Wall Street Journal -- and oil stocks are tanking.
As of 9:50 a.m. ET, shares of oil company Occidental Petroleum (NYSE: OXY) are down 5.6%, while industry bellwether ExxonMobil (NYSE: XOM) is down a solid 6%, and refiner Phillips 66 (NYSE: PSX) is leading the pack lower with a 6.7% loss.
Rising inflation and central banks' efforts to curb it by raising interest rates -- even at the cost of potentially sparking a global recession -- explain most of today's selling. As the Journal explained, "the higher the Fed raises rates, the greater the risk that it will go too far, tipping the economy into a recession."
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Why ExxonMobil, Occidental Petroleum, and Phillips 66 Stocks Just Dropped