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Oil Declines on Inflation and Recession Worries
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Oil Declines on Inflation and Recession Worries

Oil prices continued to fall on Friday with WTI crude closing 3.9% lower at $85.61 per barrel. This comes as the Consumer Price Index (CPI) data on Thursday indicated that inflation continued to soar in the U.S., with core inflation at 6.6%, the highest in the past 40 years.

Global fears of a recession resulting in weakening demand for oil, especially in China are also weighing on oil prices. China is the largest importer of crude oil and its zero-COVID policy is hampering economic activity and the demand for oil.

In addition, the decision of OPEC+ to slash production has not gone down well with the United States, which is reassessing its ties with Saudi Arabia.

Here are some stocks that could be affected by this news:

  • Energy Select Sector SPDR Fund (XLE)
  • United States Oil Fund LP (USO)
  • ProShares Ultra Bloomberg Crude Oil (UCO)
  • Exxon Mobil (XOM)
  • Chevron (CVX)
  • Occidental Petroleum (OXY)
  • United States Natural Gas Fund LP (UNG)
  • Cheniere Energy (LNG)

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