Oil Stocks Fall After Output Increase


News from Russia

The price of oil fell rapidly after a recent report out of Russia. In a report by Market Watch, the Russian government decided to increase the production of crude oil. Oil is an essential resource for the economy of Russia. Over the past few years, the economy in Russia has struggled to grow with low oil prices.

News of the output increase caused oil stocks to plummet. The oil drilling companies fell the most on the news.

Chevron News

Over the past two months, Chevron has been one of the best-performing stocks in the entire stock market. However, the stock fell nearly four percent on the latest news. Some investment managers are recommending to purchase the stock after the most recent decline. Not only does Chevron have a strong balance sheet, but the company also offers a generous dividend to shareholders. It is an excellent time to purchase the stock for a discount.

Oil Drillers

Oil drilling companies have some of the most volatile stocks in the entire market. Most oil drilling companies have high levels of debt. Drilling for oil requires a tremendous investment in both drilling equipment and technology. If the price of oil drops below a certain threshold, these drilling companies cannot survive financially.


Airline companies benefit from lower oil prices. Many of the largest airlines were two or three percent higher on the latest news. However, multiple investment managers believe that this increase is temporary. Airlines are facing numerous financial issues, and these issues will only compound with higher oil prices in the future. Increased regulations have hurt the profitability of various airlines.

Consumers are already feeling pain at the pump this year. Gas prices are much higher than last year. Some economists believe that higher gas prices may reduce tourism and travel around Memorial Day. If higher crude output continues, it will provide some relief for consumers.


Please enter your comment!
Please enter your name here