RRC - Why Oil and Gas Stocks Are Tumbling Today
Energy stocks had a rough day on Monday. Not only did oil and gas prices decline, but several other issues also weighed on the shares of producers, with several falling more than 10% by 2:30 p.m. EST.
Leading the downdraft were Antero Resources (NYSE: AR), Gulfport Energy (NASDAQ: GPOR), Range Resources (NYSE: RRC), Callon Petroleum (NYSE: CPE), and Carrizo Oil & Gas (NASDAQ: CRZO).
Crude prices pulled back on Monday, with the U.S. oil benchmark, WTI, slipping about 2% and closing below $57 a barrel. The main issue seems to be some waning optimism about whether the U.S. and China will ever sign the first phase of their trade deal. Lower crude prices will affect the cash flows of oil-focused producers like Callon Petroleum and Carrizo Oil & Gas, which is one reason their shares plunged today.