Why Devon Energy Stock Slumped Nearly 13% in September

Shares of Devon Energy (NYSE: DVN) fell 12.6% in September, according to data provided by S&P Global Market Intelligence. The culprit was lower oil prices. That offset the positive effect of closing a needle-moving acquisition. Oil prices were under pressure again last month. WTI, the main U.S. oil price benchmark, fell another 7.3% in September, closing the month at around $68 per barrel. It has now declined by 16.4% over the past quarter. The main factor is the potential for a surge in new supply later this year if OPEC boosts its production in December as planned. That potential increase in output is coming at a time when demand concerns are rising due to a possible slowdown in the global economy. Lower oil prices would hurt the cash flows of oil stocks like Devon, which is why it was under pressure last month. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool