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)