Shares of prominent energy companies, including Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), and BP (NYSE: BP), dropped on Monday as a weak macro environment weighed on oil prices.
Shares of ConocoPhillips declined the most and closed 9.7% lower on Monday. This was followed by a 7.9% decline in Exxon stock. Chevron and BP fell 6.7% and 6.8%, respectively.
The significant recovery in oil prices over the past year and a half and strong demand drove the shares of these companies higher. However, the current macro and geopolitical environment points to a slowdown in the economy and leads to volatility in oil prices.
Notably, the record-high inflation and Fed’s policy to tame it through aggressive interest rate hikes will likely impact economic growth. Further, a slowdown in the Chinese economy, Russia’s invasion of Ukraine, and supply constraints remain a drag.
Nevertheless, CVX, COP, and BP stocks sport a maximum (outperform) Smart Score of 10 out of 10 on TipRanks. Meanwhile, XOM has a neutral score of 7 out of 10.
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