Investors wondering if oil is entering a bear market don’t have to look any further for an answer!
We’re covering all of the most recent news affecting oil prices below!
- Oil has in fact entered a bear market as Brent has dropped 22% since peaking at $139.13 a barrel on March 8.
- The switch to oil entering a bear market occurs when a drop of 20% takes place from a recent high.
- Oil prices originally took off due to Russia’s invasion of Ukraine earlier this month.
- That kicked off fears of diminished oil supplies as sanctions placed on Russia prevent oil imports.
- However, recent news suggests this might not be as major of a concern in the U.S.
- Talks are currently underway that would lift sanctions on Iran and allow the U.S. to import oil from it.
- That would solve the oil supply chain issues and has been pushing the price of oil lower as well.
- As of this writing, oil is trading at around $98 per barrel.
- That sees most of the gains made during the initial invasion of Ukraine wiped out as oil drops back to normal prices.
- However, there’s one market that isn’t yet dropping alongside oil prices.
- Gas prices are still well above $4 per gallon in the U.S.
- While the surge in price appears to have halted, for now, gas still hasn’t dropped back to pre-war prices.
- Depending on how things go, we could see a drop in gas prices as oil companies react to the recent Iran news.
- Also, several oil stocks, such as Marathon Oil (NYSE:MRO), Exxon Mobil (NYSE:XOM), and Chevron (NYSE:CVX) are slipping with oil entering a bear market.
Investors seeking out more stock market news for Wednesday are in luck!
We’ve got all the hottest stock news that traders need to know about for today! That includes why shares of Tantech (NASDAQ:TANH) stock are falling, DraftKings (NASDAQ:DKNG) getting in on NFTs, and this morning’s biggest pre-market stock movers! You can find all of that at the following links!
More Wednesday Stock Market News
- Why Is Tantech (TANH) Stock Down Today?
- Is DKNG Stock a Bet on Web 3.0 Thanks to March Madness NFTs?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.