Oil stock prices fell this week due to growing economic concerns from the U.S. and China. The U.S. is thought to be raising interest rates to balance out their somewhat volatile economy post covid, this along with lower-than-expected Chinese manufacturing data has caused concern in the oil field. The FED will make the official oil stock price change as they will be the ones to more than likely increase the United States interest rates.
The oil industry is actually the third massive U.S. institution to fail in the past couple of months which isn't a great look for our economy worldwide and is starting to show potential weakness. This weakness is also scaring investors as the continuous failure of big institutions and the threat of increasing interest rates are very worrying to many.
China is experiencing economic problems as well as its manufacturing sector is doing worse than expected. They went from expansionary to contractionary over the past month with a decrease in their PMI or purchasing managers' index. This decrease is also worrying to many and is directly affecting the U.S. as most of our goods are produced by this sector. All of these factors are negatively affecting the U.S. economy and are the reasons for the Oil stock prices decrease.
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