US stocks end lower as OPEC move hits petroleum shares
NEW YORK: Oil industry stocks tumbled on Monday, leading US stocks lower, as crude prices sank to their lowest close since February 2009 in the wake of last week’s OPEC decision.
Dow members ExxonMobil and Chevron lost 2.6 percent and 2.7 percent respectively, while shale producer Continental Resources plunged 9.3 percent.
The Dow Jones Industrial Average closed down 117.12 points (0.66 percent) to 17,730.51. The broad-based S&P 500 dropped 14.62 (0.70 percent) to 2,077.07, while the tech-rich Nasdaq Composite Index fell 40.46 (0.79 percent) to 5,101.81.
The big pullback in petroleum-linked stocks came after Friday’s decision by the Organization of the Petroleum Exporting Countries not to cut output dimmed the odds of any quick recovery in oil prices.
Among the bigger losers, oil-services company Weatherford International shed 6.0 percent, while Devon Energy dived 10.1 percent after announcing $2.5 billion in deals to buy US oil assets from smaller companies.”