Recession Worries Affect Oil Prices of Big Oil Stock

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Recession Worries Affect Oil Prices of Big Oil Stock

Written by Miranda Marquit

A volatile stock market and recession worries are affecting oil prices -- and Big Oil stock.

Big Oil stock looks as volatile as the stock market today with recession worries driving the trading. Exxon (XOM) and ConocoPhillips (COP) up -- two companies with good valuation since the stock market turmoil -- and other Big Oil stocks like BP (BP) and Chevron (CVX) down. Oil prices dipped below $90 a barrel as well. And even gas prices fell on recession worries, reports the Associated Press:

'The movements in the equity markets reflect the sentiment on the U.S. economy and how other economies in the world may be affected ... if it slides into a deep recession,' said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

However, if the economic stimulus plan unveiled last week actually does what it is supposed to, all of these falling oil prices and gas prices will be history since a thriving economy means increased demand. Or at least a recovering economy would mean recovering demand.

For now, though, it is time for some bargain hunting while the market is volatile and down more often than not. Look for good deals and consider whether the fundamentals are strong enough to pull your chosen Big Oil stock through a recession.

Disclosure: I own no Big Oil stock.

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