Energy stocks slump on OPEC+ oil supply boost
While giant tech shares are the biggest weight on the market today, energy is actually the having the worst day of the 11 sectors in the S&P 500. The group is down nearly 4%.
Causality isn’t a great mystery here.
The slump in energy stocks came after oil cartel OPEC and its commercial ally Russia said they would boost production of oil, a decision that comes after President Trump has pressured Saudi Arabia, in particular, to drop the cost of oil. Crude oil fell about 2% on the news, pulling US oil majors like Exxon and Chevron down more than 3%.
OPEC+'s move to go ahead with planned cut easing makes more sense in a Trumpian world where attention/influence matters as much if not more than actual economic benefit.
— Rory Johnston (@Rory_Johnston) March 3, 2025
Even if OPEC+ may earn a bit less money, the producer group once again matters to the oil market.
The slump in energy stocks came after oil cartel OPEC and its commercial ally Russia said they would boost production of oil, a decision that comes after President Trump has pressured Saudi Arabia, in particular, to drop the cost of oil. Crude oil fell about 2% on the news, pulling US oil majors like Exxon and Chevron down more than 3%.
OPEC+'s move to go ahead with planned cut easing makes more sense in a Trumpian world where attention/influence matters as much if not more than actual economic benefit.
— Rory Johnston (@Rory_Johnston) March 3, 2025
Even if OPEC+ may earn a bit less money, the producer group once again matters to the oil market.
