Exxon Mobil Corp (NYSE:XOM), BP plc (NYSE:BP) and Shell PLC (NYSE:SHEL) shares are trading lower by 5.96% to $85.15, 8.49% to $28.18 and 7.80% to $48.27, respectively, Friday morning. Shares of several oil & gas companies are trading lower amid strength in the dollar and raised fears of an economic slowdown as investors continue to assess Wednesday's Fed commentary and 75 bps rate hike. An economic slowdown could negatively impact oil demand.
What Happened?
The Federal Reserve raised its target fed funds rate by 0.75% on Wednesday to a new range of between 3% and 3.25%, its third 0.75% rate hike in four months. The Fed said it will continue with its previously announced plan to let Treasury securities and agency debt and agency mortgage-backed securities roll off its balance sheet on a monthly basis.
"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures," the Fed said in a statement...Read More
See Also: Federal Reserve Issues Third Straight 0.75% Interest Rate Hike: What It Means For The Struggling Stock Market